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Dayforce Inc (NYSE:DAY) shares surged dramatically on Monday, August 18, 2025, following reports that private equity giant Thoma Bravo is in advanced talks to acquire the human resources management software provider. The stock jumped 24.29% to $65.75 in premarket hours after closing at $52.88 the previous trading session, representing one of the most significant single-day moves for the Minneapolis-based company.
The potential take-private deal could value Dayforce at a premium to its current market capitalization of approximately $8.4 billion, offering investors substantial upside after the stock had declined roughly 5% over the past 12 months.
Dayforce Inc. Could Go Private: Reports
According to Bloomberg sources familiar with the matter, Thoma Bravo is working on a take-private acquisition of Dayforce that could be announced as soon as the coming weeks. The discussions are described as advanced, though they could still face delays or fall through entirely, as is common with complex private equity transactions. Led by co-founder Orlando Bravo, the software-focused private equity firm has maintained an active acquisition strategy throughout 2025 despite challenging market conditions for capital deployment.
The timing of this potential deal comes at an interesting juncture for Dayforce, which has seen its stock underperform broader market indices. With shares trading down 27.20% year-to-date compared to the S&P 500’s 9.66% gain, and showing negative returns across multiple timeframes, the company may represent an attractive value opportunity for Thoma Bravo.
The private equity firm’s expertise in software companies could help unlock additional value in Dayforce’s human capital management platform and accelerate growth initiatives.
Dayforce’s current financial metrics show a company with solid fundamentals but room for improvement, including a trailing P/E ratio of 176.27, revenue of $1.85 billion, and a profit margin of 2.65%. The company’s enterprise value of $9.05 billion and strong cash position of $625.2 million make it an attractive target for a leveraged buyout, particularly given its recurring revenue model and market position in the competitive HR software space.
Dayforce Stock Makes Dramatic Rebound, Closer to Analyst Price Targets
The premarket surge to $65.75 represents a dramatic reversal of fortune for Dayforce shareholders, who have endured significant underperformance across multiple timeframes. The stock’s 24.29% premarket gain brought it closer to analyst price targets, which range from a low of $47.00 to a high of $95.00, with an average target of $66.87. This suggests that even with the acquisition premium, some analysts believe there could be additional upside potential.
The market’s enthusiastic response reflects investor confidence in Thoma Bravo’s track record with software acquisitions and the potential for operational improvements under private ownership. The stock’s technical indicators and recent trading patterns had suggested oversold conditions, with the company trading at what many analysts considered attractive valuation levels. The 52-week range of the stock and its current positioning near the lower end of that range likely made it an appealing target for private equity interest.
Looking at the broader context, Dayforce’s underperformance relative to peers in the software application industry, combined with its solid market position and recurring revenue streams, created an ideal scenario for private equity intervention. The company’s levered free cash flow of $278.8 million and reasonable debt-to-equity ratio of 45.49% provide a strong foundation for the type of financial engineering that private equity firms typically employ to enhance returns and drive operational efficiency improvements.
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