Silver Lake weighs potential $50bn-plus take-private of Workday

Silver Lake is reportedly considering a potential acquisition of Workday, a cloud software provider, that could value the company at over $50 billion, according to Reuters citing unnamed sources familiar with the talks. The discussions have been ongoing for months, but no final agreement has been reached, as they remain preliminary at this stage.

Workday's shares surged nearly 18% on Thursday following news of the potential deal, bringing its market value to approximately $51.1 billion. The private equity firm might seek additional investors to help finance the acquisition, according to one source. Previously, Silver Lake has collaborated with the Public Investment Fund of Saudi Arabia and Affinity Partners on substantial technology transactions, including the $55 billion take-private of Electronic Arts.

Workday's shares had been declining before the reports surfaced, losing around 15% since the beginning of the year and over 40% from their 2024 peak. In recent months, investors have become more skeptical about the impact of artificial intelligence on the competitive position and pricing power of traditional software firms. Workday was established in 2005 by former PeopleSoft executives Aneel Bhusri and David Duffield.

The company offers cloud-based applications for human resources, payroll, finance, procurement, planning, and other corporate functions, catering to more than 11,500 clients worldwide. In fiscal year 2025, Workday reported $9.6 billion in revenue, representing a 13% growth rate, while its operating cash flow increased by 19% to $2.9 billion.

However, its expansion rate has decelerated from 16% in the previous year, raising concerns among investors about the company's long-term growth prospects.