Private Equity Firm Thoma Bravo Announces Acquisition of HR Software Provider Dayforce at 32% Premium

In a strategic move poised to redefine the landscape of human resources technology, Thoma Bravo has reached an agreement to acquire Dayforce, one of the foremost providers of HR software solutions in the U.S., for a whopping $12.3 billion. The acquisition price reflects a 32% premium over Dayforce's share value before reports of this potential transaction, according to Silicon Angle.

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This latest deal represents Thoma Bravo’s largest take-private transaction to date and ranks among the biggest standalone enterprise software buyouts ever led by a financial sponsor. The all-cash agreement also features a substantial minority investment from a subsidiary of the Abu Dhabi Investment Authority (ADIA).

The target company, Dayforce, previously known as Ceridian until its rebranding last year, operates on a cloud-based platform that streamlines daily HR functions. Over recent years, the company has made significant advancements, including the addition of artificial intelligence features designed to automate routine tasks such as addressing employee inquiries.

Dayforce, originally founded as Ceridian HCM Holding Inc. in 1992, traces its roots to Control Data Corporation (CDC). It became independent following the CDC’s breakup and later went private in 2007 after its $5.3 billion acquisition by Thomas H. Lee Partners and Fidelity National Financial. In early 2024, Ceridian rebranded as Dayforce, reflecting the success of its core business.

Headquartered in Minneapolis, Dayforce delivers a unified, cloud-based Human Capital Management (HCM) solution that combines payroll, HR, benefits administration, recruiting, tax compliance, workforce management, and talent intelligence into a single platform. Alongside its Minneapolis headquarters, Dayforce has major operations in Toronto, where the platform was originally developed. The company competes with leading HCM providers, including ADP, Paychex, SAP, and Workday.

Thoma Bravo, a leading American private equity firm, was established in 2008 but has roots dating back to 1980 under Golder Thoma & Co. Based in Chicago, the firm specializes in software and technology investments, with a focus on enterprise software, infrastructure, cybersecurity, and tech-enabled business services. Adopting a “buy-and-build” strategy, Thoma Bravo acquires technology companies and accelerates their growth through operational improvements and product development. As of March 31, 2025, the firm manages approximately $184 billion in assets and has completed more than 535 software and technology investments. Its portfolio includes well-known names such as Anaplan, Adenza, Barracuda Networks, Darktrace, Imperva, and Proofpoint.

Why This Deal Makes Sense

For Dayforce, going private means operating free from the volatility and short-term scrutiny of public markets, allowing the acquirer firm, Thoma Bravo, to accelerate AI-driven innovation and international expansion. For Thoma Bravo, this latest deal fits the equity firm's strategy of investing in and acquiring technology companies and growing them through bolt-on M&A. Dayforce aligns with Thoma Bravo's SaaS investment thesis, which includes recurring revenues, high retention, high margins, strong unit economics, and AI-enabled platform capabilities. The deal is expected to close in early 2026.