Takeaways by Saasverse AI
- $464.7M Revenue (+9.8% YoY) | Acquisition Valuation: $12.3B | Deal Price: $70/Share (+32% Premium).
- Dayforce’s AI-enabled cloud platform drives HR automation with tools like Dayforce Wallet, AI Assistant, and workforce training modules.
- Thoma Bravo’s acquisition, supported by Abu Dhabi Investment Authority, positions Dayforce for accelerated growth and innovation in the HR tech market.
Dayforce Inc., formerly known as Ceridian, has announced a definitive agreement to be acquired by private equity giant Thoma Bravo in a deal valued at $12.3 billion. The purchase price of $70 per share reflects a 32% premium over the company's last closing price before recent acquisition speculation, and the transaction is expected to close in early 2026. The deal also includes a notable minority investment from a subsidiary of the Abu Dhabi Investment Authority (ADIA).
Dayforce has emerged as a key player in the human resources software market, offering a comprehensive cloud-based platform that integrates payroll management, workforce analytics, employee engagement tools, and AI-powered automation features. The company’s innovative use of AI, including the Dayforce AI Assistant and candidate recommendation tools, has been a strong differentiator in the competitive Human Capital Management (HCM) landscape. These capabilities aim to reduce errors, automate repetitive HR tasks, and enhance the overall efficiency of HR teams.
The platform’s standout features include the Dayforce Wallet, which allows employees to access earnings on-demand through an app and payment card, and its shared database architecture, which eliminates the need for duplicative data entries across modules. These innovations have helped Dayforce attract over 6,900 enterprise clients as of June 2023, generating $464.7 million in Q2 revenue—an increase of 9.8% year-over-year.
Thoma Bravo’s acquisition represents one of the largest HR technology deals since the $11 billion buyout of Ultimate Software Group in 2019, which subsequently merged with Kronos Inc. to form the $22 billion-valued UKG Inc. The private equity firm’s Managing Partner, Holden Spaht, emphasized the growth potential of Dayforce, stating, “We see significant opportunity to accelerate growth, deepen customer impact and continue to drive innovation across the global HCM landscape.”
“ The acquisition underscores a broader trend of private equity interest in cloud-based SaaS platforms, particularly those leveraging AI to streamline business processes. As HR teams increasingly adopt technology to navigate workforce challenges and enhance operational efficiency, Dayforce is well-positioned to capture a larger share of the market under Thoma Bravo’s stewardship. However, the deal also places pressure on competitors like Workday, UKG, and SAP SuccessFactors to innovate and maintain their foothold in the space. ” Saasverse Analyst comments.
Saasverse Insights
Thoma Bravo’s expertise in scaling SaaS companies, combined with Dayforce’s robust product portfolio, will enable the company to expand its customer base and product offerings. The infusion of capital and strategic focus could also accelerate the development of AI-driven features, providing a competitive edge in the rapidly evolving HR tech industry. For stakeholders, this deal not only highlights the value of innovation in the SaaS and cloud sector but also signals a continued appetite for high-growth opportunities in enterprise software.