Workday buyout may restore confidence in battered software valuations, analysts say

New York - Financial investor Silver Lake is reportedly considering acquiring software provider Workday, according to insiders. With a market value of approximately $43 billion, this would be one of the largest acquisitions in the history of the software industry. Sources indicate that Silver Lake and the personal and financial management software company have been engaged in discussions about a potential deal over the past few months.

However, an agreement is not guaranteed. Workday shares have lost around 15 percent of their value this year, as investors question the future prospects of traditional software in the age of artificial intelligence (AI). The share price is more than 40 percent below its peak in 2024. To finance the deal, Silver Lake may seek additional investors, according to one insider.

For now, both Silver Lake and Workday have declined to comment on the situation. This transaction would reaffirm that major technology acquisitions are on the rise again after several years of muted activity. At the beginning of the year, financial investor Thoma Bravo had agreed to acquire software provider Dayforce for about $16 billion.