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HR software program agency Dayforce mentioned on Wednesday it was in advanced discussions to be acquired by Thoma Bravo for $70 per share, as personal fairness companies look to software program as development drivers in an unsure economic system.
Dayforce’s shares rose greater than 3% earlier than the bell.
The provide represents a premium of 32.4% based mostly on the inventory’s closing worth on August 15, earlier than the talks had been first reported, and a deal worth of $11.18 billion, in accordance with Reuters calculations.
If finalized, the deal will mark one other personal fairness buyout of a software program agency, with Thoma Bravo betting on the build-out of artificial-intelligence software program and the resilience of recurring income in an economic system pressured by commerce tariffs and erratic spending.
The human capital administration market has undergone vital consolidation, with huge gamers shopping for up smaller companies to bolster their merchandise and seize market share amid indicators of a deteriorating labor market.
Paychex introduced its acquisition of rival Paycor for $4.1 billion at first of the yr, whereas Automatic Data Processing acquired WorkForce Software final yr for round $1.2 billion.
Dayforce mentioned there might be no assurances of whether or not an settlement for a transaction could be reached.
The firm, which supplies human capital administration and payroll companies by means of its software program platform, has seen its inventory lose greater than 9% of its worth thus far this yr, underperforming friends.