What's Happening?
Dayforce shareholders have overwhelmingly approved a $12.3 billion buyout by Thoma Bravo, despite initial opposition from its largest shareholder, T. Rowe Price Associates. The deal, which received 88.4%
of votes in favor, aims to capitalize on the software sector's resilient subscription services and recurring revenue amidst economic challenges. Thoma Bravo's acquisition is expected to close late this year or early 2026, with shareholders receiving $70 per share in cash.
Why It's Important?
The approval of the take-private deal underscores the attractiveness of software companies with stable revenue models in uncertain economic times. Thoma Bravo's investment in Dayforce reflects confidence in the sector's ability to withstand market volatility and labor market challenges. The deal highlights the strategic importance of recurring revenue models for private equity firms seeking to mitigate risks associated with fluctuating economic conditions.
What's Next?
The completion of the acquisition will likely lead to strategic shifts within Dayforce as Thoma Bravo integrates the company into its portfolio. Stakeholders will be monitoring how the transition impacts Dayforce's operations and market position. The deal's closure will also influence investor sentiment towards similar transactions in the software industry.
