Dayforce, Thoma Bravo Deal Has Some Analysts Vying For More
Dayforce Inc agreed to a take-private deal with Thoma Bravo, offering $70 per share, valuing the company at $12.3 billion. Following the announcement, analysts from KeyBanc and Needham downgraded the stock ratings. KeyBanc's Jason Celino moved from Overweight to Sector Weight, while Needham's Scott Berg downgraded from Buy to Hold, citing concerns over Dayforce's public market valuation despite its strong technology. The deal awaits shareholder approval and is expected to close in Q1 2026. Dayforce shares fell 0.09% to $68.94 post-announcement.
Dayforce Inc DAY agreed to a take-private deal with Thoma Bravo on Thursday, and two analysts promptly downgraded the stock.
- KeyBanc Capital Markets analyst Jason Celino downgraded the rating from Overweight to Sector Weight.
- Needham analyst Scott Berg downgraded the rating from Buy to Hold.
Check out other analyst stock ratings.
KeyBanc Capital Markets: Thoma Bravo has offered $70 per share. That equates to an enterprise value of $12.3 billion.
"Given the increasing competitiveness within the HCM market and the more mixed optics around NT demand, we believe the proposed transaction is a good outcome for shareholders," Celino said in a note.
Needham: Thoma Bravo's deal values Dayforce at the same multiple as the valuation at which Paychex Inc PAYX acquired Paycor earlier this year, Berg said.
"While we believe Dayforce deserves a higher premium due to revenue scale and best in class technology, the company has struggled to attract a strong valuation in the public markets," the analyst wrote.
The Dayforce board of directors approved the deal. Shareholders must also cast a vote. The transaction is expected to close in the first quarter of 2026.
Price Action: Shares of Dayforce had declined by 0.09% to $68.94 at the time of publication on Friday.
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