Private equity firm Thoma Bravo is nearing a deal to acquire HR software company Dayforce, a source familiar with the matter told Reuters on Monday.
Shares of Dayforce DAY-N, which has seen its stock lose more than 27 per cent of its value so far this year, were up about 29 per cent in late-afternoon trading. Dayforce had a market value of US$8.44-billion as of Friday’s closing price.
Dayforce offers a cloud-based human capital management platform that includes payroll, workforce management, benefits, talent management, compliance and analytics.
Thoma Bravo has been actively pursuing software acquisitions this year, betting on the build-out of artificial intelligence and the resilience of recurring revenue in a volatile economy.
A deal could be announced as early as this week or possibly next week, the source said.
Thoma Bravo and Dayforce did not immediately respond to requests for comment.
Bloomberg News, which first reported the potential deal on Sunday, said that while the talks were advanced, they could still be delayed or falter.
Dayforce beat Wall Street expectations for second-quarter revenue and raised its annual revenue forecast last week, as more enterprises increase use of AI and cloud-based platforms to run day-to-day operations.