Dayforce, Thoma Bravo Deal Has Some Analysts Wanting More

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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