Dayforce, Inc. announced that it has entered into a $12.3 billion definitive agreement with Thoma Bravo to transition into a privately held company.
The Minneapolis- and Toronto-based human capital management (HCM) technology firm will provide stockholders with $70 per share in cash, representing a 32% premium to its unaffected closing price on August 15, 2025. The deal also includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
Transaction Designed to Accelerate Growth and AI Capabilities
Dayforce emphasized that the agreement with Thoma Bravo is intended to accelerate its growth strategy, enhance customer value, and reinforce its leadership in artificial intelligence (AI) within the HCM sector.
“Dayforce has always stood for a bold promise: to make work life better,” said David Ossip, Chair and CEO of Dayforce. “With Thoma Bravo, we are partnering with a truly special organization to accelerate our business—with our focus, resources, and product innovation all laser-pointed on leaping forward as the HCM leader for a world of work shaped by AI.”
The company noted that its mission has consistently been centered on improving the employee experience through software that streamlines payroll, workforce management, and talent solutions. The infusion of capital and resources from Thoma Bravo is expected to strengthen Dayforce’s ability to develop next-generation AI tools, which are increasingly seen as critical for managing evolving workplace demands.
Strategic Value and Market Outlook
Gerald Throop, Lead Independent Director of Dayforce, highlighted the financial benefits for shareholders. “The Board of Directors believes this transaction will provide immediate and substantial value to Dayforce stockholders and recognizes the valuable organization that the team has built,” he said.
Thoma Bravo, known for investing in enterprise software firms, sees Dayforce as well-positioned to expand globally and set new benchmarks in HCM. “Dayforce’s differentiated platform, global scale, and world-class team make it well-positioned to meet the growing and evolving needs of employers and employees around the world,” said Holden Spaht, Managing Partner at Thoma Bravo.
He added that the firm anticipates “significant opportunity to accelerate growth, deepen customer impact, and continue to drive innovation across the global HCM landscape.”
Echoing this sentiment, Tara Gadgil, Partner at Thoma Bravo, described Dayforce as a company built on “relentless innovation and customer commitment.” She noted that the partnership will provide resources to “help them move faster, think bigger, and unlock even more market and product potential.”
Industry Context and Implications
The move underscores a broader industry trend of private equity firms investing heavily in software companies that provide mission-critical services for businesses. For Dayforce, going private offers flexibility to pursue long-term innovation strategies without the short-term pressures of public market performance.
Dayforce has grown steadily as organizations adopt digital solutions to manage payroll, workforce scheduling, and compliance amid increasingly complex labor markets. The integration of AI into HCM platforms is seen as essential to managing a future shaped by automation, predictive analytics, and personalized employee experiences.
By aligning with Thoma Bravo, Dayforce aims to solidify its standing as a leader in this evolving market while continuing to provide value-driven solutions for employers and employees.
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