Canada-headquartered HR management software firm Dayforce is in advanced negotiations with American private equity firm Thoma Bravo for a potential acquisition.
According to Dayforce, discussions involve Thoma Bravo possibly acquiring the company for $70 USD per share, valuing the firm, listed on the Toronto and New York Stock Exchanges, at over $11 billion USD ($15.3 billion CAD).
Dayforce is helmed by Toronto’s tech entrepreneur David Ossip.
This deal would represent a premium of over 32% compared to Dayforce’s last closing share price before Bloomberg’s report on these talks. Dayforce notes no certainty exists regarding reaching a deal or its terms.
Formerly Ceridian, Dayforce operates from Toronto and Minneapolis, Minn. Founded in 2009, David Ossip, a Toronto entrepreneur, previously created and sold Canadian HR software entity Workbrain to US-based Infor for $227 million CAD in 2007.
Ceridian acquired Dayforce in 2012 for an undisclosed sum, with Ossip leading the combined entity as chair and CEO. He has since transformed the company.
Dayforce has been its flagship offering, delivering payroll, HR, benefits, talent, and workforce management services on one platform. Ceridian listed on TSX and NYSE in 2018. In 2023, it purchased Toronto-based talent intelligence firm Ideal to enhance its AI capabilities, and rebranded to Dayforce last year.
Dayforce now boasts over 9,500 employees and nearly 7,000 clients. Its LinkedIn indicates more than 1,500 employees are based in Canada.
RELATED: Softchoice privatized, relocated to the US by WWT following $1.48 billion acquisition
Should Thoma Bravo privatize Dayforce, it would continue a trend of tech companies going private. Dayforce would join Canadian firms like Copperleaf Technologies, Magnet Forensics (also privatized by Thoma Bravo), Nuvei, and Softchoice.
In the US, consolidation in the HR software market is rising, as Paychex