Thoma Bravo eyes Dayforce in potential $11bn deal

Dayforce (formerly Ceridian) has confirmed that it is in advanced discussions with private equity firm Thoma Bravo regarding a potential acquisition of the human capital management (HCM) software company.

The proposed offer is $70 per share, representing a 32.4% premium based on the closing price of Dayforce’s stock on 15 August 2025, before news of the talks emerged.

The total value of the potential deal is estimated at $11.18bn, as calculated by Reuters. However, Dayforce has stated that there are no assurances that an agreement will be reached.

Currently, Dayforce is listed on both New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX).

Should the deal be signed and closed subsequently, it will result in Dayforce becoming a privately-owned company.

Earlier in August 2025, the HCM software company released its financial results for the second quarter ending 30 June 2025. Dayforce’s total revenue for the reported quarter reached $464.7m, marking a 9.8% increase on both GAAP and constant currency bases, compared to the same quarter of the previous year.

The company reported a net income of $21.3m, contrasting with a net loss of $1.8m in the same period of the previous year.

Recurring revenue for Dayforce, excluding float, stood at $315.5m, a rise of 13.6% year-over-year. By the end of June 2025, Dayforce had 6,984 customers using its platform, reflecting a year-over-year increase of 4.9%.

For Q3 2025, Dayforce projects total revenue between $476m and $486m and recurring revenue, excluding float, between $329m and $339m, marking an increase of up to 16.1%.

The adjusted EBITDA margin is expected to be between 30% and 30.5%. Full-year guidance anticipates total revenue between $1.93bn and $1.95bn.

In recent developments, the Canadian Government adopted Dayforce for human resources (HR) and pay transformation to enhance efficiency and effectiveness across departments. This move replaces multiple existing HR systems as part of the government's digital transformation strategy.

Additionally, an unnamed global apparel major has expanded its use of Dayforce to support its workforce of 37,000 employees worldwide. A US-based essential infrastructure services provider has also chosen Dayforce solutions for managing payroll and workforce management across its operations in 45 states.

"Thoma Bravo eyes Dayforce in potential $11bn deal" was originally created and published by Verdict, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

View Comments