Private equity firm Reuters is in discussions to acquire software provider Workday in a transaction that would value the company at approximately $43 billion.
Negotiations between Silver Lake and Workday have been underway for several months, according to people familiar with the matter. While discussions continue, sources emphasize that an agreement is not guaranteed and no final deal has been secured. Neither Silver Lake nor Workday immediately responded to requests for comment on the potential buyout.
Should the transaction cross the finish line, it would rank among the largest software buyouts in history. Silver Lake is considering bringing in additional investors to help finance the acquisition. The firm previously teamed up with Saudi Arabia’s Public Investment Fund and Affinity Partners for an approximately $55 billion take-private deal involving video-game maker Electronic Arts.
Market Pressures and Valuation Strains
The talks arrive as traditional software providers navigate an increasingly complicated market environment. Investors have questioned the long-term durability of traditional software business models in the face of rapidly advancing artificial intelligence technologies. Workday shares have fallen about 15% this year, sitting more than 40% below their 2024 peak.
Despite those headwinds, the company’s underlying business has shown pockets of resilience. In May, Workday posted better-than-expected financial results and raised its forecast, buoyed by artificial intelligence tailwinds. Following initial reports of the takeover talks, Workday shares popped more than 18% before trading was halted multiple times in late afternoon sessions. The company’s market capitalization last topped more than $50 billion following the disclosure.
Leadership and Industry Context
The potential acquisition coincides with a significant leadership transition at Workday. Co-founder Aneel Bhusri returned to lead the company as chief executive officer in February, stepping back into the role after Carl Eschenbach stepped down. Bhusri previously served in various leadership positions, including CEO and co-CEO, after co-founding the firm in 2005 alongside David Duffield.
Aneel Bhusri, the CEO, and Egon [Durban] from Silver Lake know each other well through many connections
, analyst Brent Thill told CNBC’s Power Lunch
, as reported in coverage of the market surge. So we think certainly this could make sense, and I think this goes back to how badly hit software’s been
, Thill added.
Corporate Footprint and Global Reach
Workday went public in 2012 and has since established itself as a major pillar in enterprise cloud architecture. The company specializes in workforce and financial management software, providing cloud-based solutions for human resources, payroll, finance, expenses, and strategic planning.
The developer’s client roster spans more than 11,500 organizations worldwide. Major global entities rely on its financial and workforce systems, including Netflix, U.S. Bank, Johns Hopkins University, and Thomson Reuters.
Broader Private Equity Revival
A successful buyout of Workday would serve as a powerful signal that large-scale technology buyouts are staging a comeback after several years of subdued market activity.
Signs of renewed appetite are already visible across the sector. Earlier this year, Thoma Bravo agreed to acquire payroll software provider Dayforce in a transaction valued at approximately $16 billion.
