Thoma Bravo to buy HR tech firm Dayforce in $12.3b deal

US private equity firm Thoma Bravo has struck a landmark agreement to acquire Dayforce, a Minneapolis-based HR technology company, in a transaction valued at US$12.3 billion. The deal, confirmed by both companies on Monday, will see Thoma Bravo pay US$70 per share, representing a 32% premium to Dayforce’s stock price prior to reports of the takeover emerging.

The acquisition will be executed with the support of the Abu Dhabi Investment Authority (ADIA), which will take a significant minority stake in the transaction. Once finalised, the deal will mark Thoma Bravo’s largest take-private acquisition to date and one of the most significant buyouts in the HR software sector.

Dayforce, previously known as Ceridian HCM, was acquired by THL Partners and Fidelity National for US$5.3 billion more than a decade ago before being taken public in 2018. Its valuation has more than doubled since then, underscoring the sharp rise in demand for HR technology solutions.

“This transaction underscores the strategic importance of HR technology as organisations increasingly rely on integrated platforms to manage payroll, compliance and workforce engagement,” Thoma Bravo said in a statement quoted by Reuters.

The Dayforce buyout highlights the dramatic appreciation in HR software valuations over the past decade. The deal is more than twice the size of the earlier buyout of Ceridian HCM, reflecting the sector’s shift from back-office utility to mission-critical infrastructure for enterprises.

In recent years, HR tech consolidation has accelerated. In 2019, French firm Cegid acquired Meta4 to expand its coverage to more than 22 million employees worldwide, while the UK’s Access Group completed multiple HR acquisitions and reported revenue growth of over 40%. 

According to Bloomberg, Thoma Bravo described the Dayforce acquisition as the “largest standalone enterprise software deal ever led by a financial sponsor”, underscoring its scale and significance.

The acquisition comes against a backdrop of economic uncertainty and a softening US labour market. The US Labour Department’s July 2025 report, cited by CNBC, revealed just 73,000 new jobs created, with unemployment climbing to 4.2%. Revisions for prior months also erased 258,000 jobs, marking one of the weakest hiring stretches outside a recession in decades.

Dayforce provides an integrated platform that helps companies manage payroll, scheduling, compliance, and employee engagement. With operations spanning North America, Europe and Asia-Pacific, it has become a leading player in enterprise HR systems, competing with platforms such as Workday and SAP SuccessFactors.

The acquisition by Thoma Bravo is expected to provide Dayforce with greater flexibility to expand its product suite and accelerate growth initiatives without the short-term pressures of quarterly earnings reports.