Human capital management software provider Dayforce is going private in a deal with Thoma Bravo valued at $12.3 billion.
The news, which had leaked out earlier this week, comes as Dayforce plays in a crowded HCM space. Thoma Bravo has a broad portfolio of enterprise software vendors including Coupa, Flexera, Conga, Darktrace and others.
Under the terms of the deal, Dayforce shareholders will get $70 per share in cash, good for a 32% premium over the August 15 closing price. The Thoma Bravo purchase includes a minority investment from the Abu Dhabi Investment Authority.
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David Ossip, CEO of Dayforce, said the move to grow private will "accelerate our business - with our focus, resources, and product innovation all laser-pointed on leaping forward as the HCM leader for a world of work shaped by AI."
The deal is expected to close in early 2026.
Dayforce was formerly known as Ceridian. In 2012, Ceridian acquired Dayforce, a cloud HCM player. In 2018, Ceridian went public with a focus on Dayforce. The company took on the Dayforce brand in 2024.
The company reported second quarter net income of $21.3 million on revenue on $464.7 million, up 10% from a year ago. Dayforce has 6,984 customers on its platform.
Dayforce projected 2025 revenue between $1.935 billion and $1.955 billion.
Constellation Research's take
Holger Mueller, an analyst at Constellation Research, said:
"The investment from Thomas Bravo comes somewhat as a surprise - as Dayforce is on a roll. With its interational expansion Dayforce has quickly become an alternative to the larger SAP, Oracle and Workday - three giants that all do not offer as in depth workforce managment. On the other side, Dayforce is on a massive investment jouney, adding compliance, workforce management and payroll for 40 countries. The additional funding from Thomas Bravo may be be able to accelerate the R&D effort and possibly go beyond. Building sales and marketing presence is not a small investment either. The bottom line is - if the strategy remains largefly unchained, we will see a turbocharged Dayforce soon."
