Private equity firm Thoma Bravo on Thursday agreed to buy Dayforce in an all-cash deal valued at $12.3 billion, including debt, continuing its acquisitions of software companies. Dayforce stock popped earlier this week on news of a likely agreement.
Thoma Bravo will pay $70 a share, a roughly 32% premium to Friday's closing price for Minneapolis-based Dayforce. Investment firm Abu Dhabi Investment Authority, a sovereign-wealth funds, will take part in the Dayforce transaction.
On the stock market today, Dayforce stock rose more than 1% to 68.34.
Thoma Bravo has also acquired Coupa Software, Anaplan, and Everbridge as well as cybersecurity firms Proofpoint, SailPoint, Ping Identity and ForgeRock. SailPoint again trades as a public company.
Crowded Market
Dayforce, formerly Ceridian, competes in the human capital management (HCM) market vs. Automatic Data Processing, Paychex, Workday, Paycom Software, Paylocity Holding and others.
The company garners most revenue from its Dayforce business, having moved on from payroll service bureau-type services. Growth comes largely from taking away customers of ADP and Paychex.
Originally part of computer maker Control Data, Dayforce became a stand-alone company in 1992 and went private in 2007. The software maker held an initial public offering in 2018 and raised $462 million.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
