Exclusive-Silver Lake in talks to buy Workday, sources say

Private equity firm Silver Lake is engaged in talks to acquire software company Workday, aiming to make the deal one of the largest software buyouts in history, according to sources. News of the potential acquisition sent Workday shares soaring, increasing by nearly 18 percent on Thursday. The Pleasanton, California-based company is valued at around $43 billion, but this surged to approximately $51.1 billion following the news, reflecting a market value jump.

Workday shares had declined by around 15 percent in 2024, as investors grew concerned about the future of traditional software amidst rapid advancements in artificial intelligence. This year, private equity firms have been cautious in large software acquisitions due to AI concerns, resulting in a scarcity of significant software buyouts.

A potential Workday acquisition would present a substantial challenge for private equity appetite in traditional software businesses amid AI transformation.