Thoma Bravo, a prominent software-focused private investment firm, has successfully closed a substantial $5.5 billion leveraged loan aimed at financing its anticipated acquisition of Dayforce Inc., a provider of HR software solutions. This significant transaction has garnered robust investor interest, as reported by Bloomberg.
The leveraged loan, structured with a seven-year maturity, was priced at 3 percentage points above the benchmark interest rate, which is a favorable rate compared to initial estimates of 3.25 to 3.5 points. Additionally, the loan was issued at a discount of 99.75 cents on the dollar. Goldman Sachs played a leading role in the syndication of this deal, capitalizing on the heightened demand for acquisition financing in the current market.
This financing represents the largest buyout financing in 2025 thus far, exceeding the previous record set by Quikrete, which secured a $3.95 billion take-private loan for Summit Materials. Thoma Bravo's acquisition of Dayforce, which was agreed upon in August, is valued at $12.3 billion, inclusive of debt, translating to an acquisition price of $70 per share. Dayforce specializes in providing comprehensive HR software solutions for payroll, recruiting, and employee development, which positions it well within a growing sector that is increasingly vital for organizations navigating workforce challenges.
The strategic rationale behind this acquisition lies in Thoma Bravo's focus on expanding its portfolio within the software industry, particularly in the HR technology space, which has seen significant growth due to evolving workplace dynamics and the need for efficient human resource management solutions. The acquisition is expected to enhance Thoma Bravo's capabilities in the software domain, providing them with a strong foothold in the HR sector.
Looking ahead, the deal is poised to close in the near term, although specific timelines for regulatory approvals and finalization have not been publicly disclosed. As with any significant acquisition, it will be subject to standard regulatory scrutiny, including antitrust assessments, which may influence the timeline.
The potential market impact of this transaction is noteworthy. Shareholders of Dayforce will benefit from a premium on the stock price, while Thoma Bravo aims to leverage Dayforce's existing customer base and technology to drive further growth. Employees of both companies may experience shifts in their work environments and corporate culture as the integration process unfolds. Overall, this acquisition signals a continued trend of consolidation in the technology sector, particularly in software, with implications for competitors and stakeholders alike.