Workday’s stock jumps 17% on report of Silver Lake buyout discussions
Shares of the human resources management software company Workday Inc. jumped almost 18% today after a report emerged that it’s holding acquisition talks with the private equity firm Silver Lake. Reuters said Silver Lake is prepared to pay up to $43 billion to acquire Workday, an amount that would make it one of the largest-ever […] The post Workday’s stock jumps 17% on report of Silver Lake…
Shares of Workday, a human resources management software company, surged almost 18% following reports of acquisition discussions with private equity firm Silver Lake. According to Reuters, Silver Lake is reportedly ready to pay up to $43 billion for Workday, making it one of the largest-ever software industry buyouts. The potential acquisition has been ongoing for several months, but there is no guarantee of a deal, as the source spoke anonymously due to the sensitive nature of the discussions.
Workday's market capitalization stood at approximately $43 billion before the news broke, resulting in a higher stock value. The company's shares closed at $206.45 on Thursday, boosting its value to around $51.1 billion on a trading day with multiple suspensions. Silver Lake could potentially bring additional investors to finance the takeover, having previously collaborated on a $55 billion deal with Affinity Partners and Saudi Arabia's Public Investment Fund to acquire Electronic Arts Inc. In contrast to the recent struggles of traditional software firms, private equity firms have been hesitant to invest in such acquisitions due to concerns about AI's disruptive impact.
However, if the Workday buyout happens, it would be significantly larger than the previous largest software buyout, Hg Capital's $46.4 billion acquisition of OneStream Software LLC. This would indicate strong private equity interest in traditional software firms despite the perceived disruption from AI. Workday was founded in 2005 by CEO Aneel Bhusri and David Duffield before going public in 2012.
The company offers cloud-based software for various business functions and serves more than 11,500 customers globally, including major names like Netflix and Thomson Reuters. Bhusri returned as CEO in February, replacing Carl Eschenbach, who stepped down amid pressure due to the growing AI threat. Workday's latest earnings report in May showed a surprise beat in earnings and revenue, driven by growing demand for its own agentic AI offerings.
Written by urgent.news from SiliconANGLE's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
