Private equity giant Thoma Bravo is reportedly in advanced discussions to acquire Dayforce Inc., a leading provider of human capital management software, in a deal that could value the company at more than $9 billion and take it private. The talks, which have sent Dayforce’s shares soaring by over 26% in pre-market trading on August 18, 2025, come amid a wave of consolidation in the software sector, where public market volatility has made private ownership an attractive option for growth-oriented firms. According to a report from Bloomberg, the negotiations are progressing rapidly, with a potential announcement in the coming weeks.

Dayforce, formerly known as Ceridian, specializes in AI-driven HR solutions that help businesses manage payroll, workforce scheduling, and employee engagement. The Minneapolis-based company has seen its revenue climb 70% from 2021 to 2024, yet its stock has plunged about 60% from its 2021 peak, reflecting broader market pressures on tech valuations. This disconnect between strong fundamentals and share performance has drawn interest from buyout firms like Thoma Bravo, known for targeting undervalued software assets.

Thoma Bravo’s Strategic Play in Software Buyouts

Thoma Bravo, a Chicago-based private equity firm with a storied history in tech investments, has executed over 270 software transactions, often transforming legacy players into high-margin platforms. Posts on X highlight the firm’s reputation for spotting opportunities in SaaS companies during downturns, with one user noting its success in deals like the $10.6 billion acquisition of Boeing’s digital aviation unit. In this case, Thoma Bravo appears to be betting on Dayforce’s scalable infrastructure and AI capabilities to drive long-term value under private ownership.

The proposed deal aligns with Thoma Bravo’s pattern of taking public companies private to streamline operations away from quarterly earnings scrutiny. As detailed in a briefing from The Information, Dayforce’s market value stood at about $8.4 billion before the news broke, but the buyout could command a premium, reflecting the firm’s confidence in the HR tech space amid labor market shifts.

Market Reactions and Industry Implications

Shares of Dayforce jumped sharply following the reports, underscoring investor enthusiasm for a privatization that could unlock efficiencies. Coverage from Nasdaq notes that the talks are advanced, potentially marking one of the largest software take-privates of 2025. This move comes as the HR software industry grapples with evolving demands for automation and data analytics, areas where Dayforce has invested heavily.

Analysts point to broader trends in private equity’s appetite for SaaS firms, with Thoma Bravo’s recent fundraise of $24.3 billion positioning it as a dominant player. A report in Private Equity Insights suggests the deal could accelerate consolidation, allowing Dayforce to pursue aggressive expansions without public market constraints.

Challenges and Future Outlook for Dayforce

However, the path forward isn’t without hurdles. Dayforce has faced stock declines of more than 25% in the past six months, attributed to macroeconomic volatility and competition from rivals like Workday and UKG. If the acquisition proceeds, Thoma Bravo might focus on cost optimizations and AI integrations to boost margins, as seen in its past turnarounds.

Industry insiders speculate that privatization could enable Dayforce to invest more boldly in emerging technologies, such as predictive analytics for talent management. Drawing from sentiment on X, where users praise Thoma Bravo’s track record in high-growth SaaS, the deal could redefine standards for HR tech valuations.

Broader Context in Private Equity Dynamics

This potential transaction fits into a pattern of private equity firms capitalizing on depressed public valuations. For instance, Thoma Bravo’s earlier acquisitions, like the $2 billion Olo deal, emphasize recurring revenue models— a strength of Dayforce’s platform. As reported by Investopedia, the share pop reflects market anticipation of a premium offer.

Ultimately, if finalized, the Dayforce buyout could signal renewed vigor in tech M&A, providing a blueprint for other software firms navigating uncertain markets. With Thoma Bravo’s expertise, Dayforce might emerge stronger, poised to lead in an era of digital workforce transformation.