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Silver Lake in talks to acquire Workday in major software buyout
Workday shares jumped nearly 18% on Aug. 13, adding roughly $8 billion in market value, as the talks surfaced amid ongoing AI pressure on software stocks.
Workday (WDAY) shares surged nearly 18% on Aug. 13, their best single day in about a decade, after Reuters reported that private equity firm Silver Lake is in talks to acquire the human resources and financial management software company.
The report said the potential transaction could rank among the largest software buyouts in history. Trading was halted multiple times as the rally accelerated, lifting Workday's market value to roughly $51 billion from about $43 billion before the news, an increase of nearly $8 billion in one session.
The article notes Silver Lake has completed major tech buyouts before, including Dell Technologies, VMware, and Qualtrics. It also highlights that Silver Lake recently partnered with investors including Saudi Arabia's Public Investment Fund and Affinity Partners on a take private of Electronic Arts last year.
While Workday has posted better than expected results in May and raised its forecast on AI tailwinds, the report emphasized nothing is confirmed and that ongoing talks may not lead to a deal. Analysts cited in the piece said a completed transaction could be a strong signal that public markets may have overdiscounted software risk tied to AI, even as large software buyouts have been rarer amid uncertainty over future software value.
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