2 weeks ago
Silver Lake weighs Workday takeover in historic software buyout
A big investment company called Silver Lake is talking about buying Workday, a software company.
Silver Lake is a private equity firm, which means it buys companies using money from big investors.
The talks are still very early, so nobody knows for sure if the purchase will happen.
When the news came out, Workday's shares went up almost 18 percent in a single day.
That made the company worth about $51 billion instead of $43 billion.
If the deal happens, it could be one of the biggest software purchases in history.
In the past, Microsoft and Broadcom each paid $69 billion for big tech companies, Activision Blizzard and VMware.
Dell paid $67 billion for EMC, and Oracle paid $28 billion for Cerner.
A group led by Saudi Arabia's investment fund also just bought Electronic Arts for $55 billion.
Experts say this news might mean big investment companies want to buy more software businesses in the future.
Private equity firm Silver Lake is in early-stage talks to acquire software company Workday, Reuters reported, citing people familiar with the matter.
Workday shares surged nearly 18% on Thursday to close at $206.45, lifting the company's market value to roughly $51.1 billion from about $43 billion.
There is no certainty that a transaction will be completed, with talks still at an early stage, according to the report.
A deal could become one of the largest software buyouts in history and signal renewed appetite for large-scale technology and software buyouts, Reuters said.
Comparable deals include Microsoft-Activision Blizzard and Broadcom-VMware at $69 billion each, Dell-EMC at $67 billion, Saudi PIF-Electronic Arts at $55 billion, and Oracle-Cerner at $28 billion.
- Who
- Private equity firm Silver Lake and software company Workday, as reported by Reuters citing people familiar with the matter.
- What
- Silver Lake is in early-stage talks to acquire Workday in what could become one of the largest software buyouts in history.
- Where
- Workday is based in California; no other locations were specified in the article.
- When
- Talks are ongoing and at an early stage; Workday shares surged on the Thursday after the Reuters report, though an exact date was not stated.
- Why
- The potential deal could become one of the largest software buyouts ever and signal renewed appetite for large-scale technology and software buyouts.
Key facts
- Potential acquirer
- Silver Lake (private equity firm)
- Takeover target
- Workday (California-based software company)
- Deal status
- Early-stage talks; no certainty a transaction will be completed
- Workday market value before report
- Around $43 billion
- Workday market value after share surge
- Roughly $51.1 billion
- Share price move
- Surged nearly 18% on Thursday to close at $206.45
- Largest comparable software buyout
- Microsoft-Activision Blizzard and Broadcom-VMware at $69 billion each (2023)
- Report source
- Reuters, citing people familiar with the matter
Sources
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