Silver Lake in talks to acquire Workday in a deal valued at roughly $43 billion
Private equity firm Silver Lake is in talks to acquire Workday in a deal that would value the HR and finance software company at roughly $43 billion, ranking among the largest software buyouts ever. Workday shares surged nearly 18% on the news.
The reported deal
Private equity firm Silver Lake is in talks to acquire Workday (WDAY.O), the Pleasanton, California-based human-resources and financial management software company, according to people familiar with the matter cited by Reuters. The discussions have been held over recent months and remain ongoing, with no guarantee a deal will materialize. Neither Silver Lake nor Workday responded to requests for comment from Reuters.
Before the news broke, Workday had a market value of about $43 billion. The deal would rank among the largest software buyouts in history. One source said Silver Lake could bring in additional investors to finance the transaction. The firm previously teamed with Saudi Arabia's Public Investment Fund and Affinity Partners for its roughly $55 billion take-private deal for videogame maker Electronic Arts in 2025.
- Hg Capital / OneStream (Jan 2026)
- 6.4 $B
- Thoma Bravo / Dayforce
- 12.3 $B
- Silver Lake / Workday (talks)
- 43 $B
- Silver Lake / Electronic Arts (2025)
- 55 $B
Market reaction
News of the talks sent Workday shares surging. RTE reported the stock closed at $206.45 on August 13, giving Workday a market value of around $51.1 billion, a jump of nearly 18%. The Next Web, citing CNBC, said the shares rose about 25% before trading was halted.
The rally came after a difficult year for the stock. Workday shares had fallen about 15% year-to-date and were down more than 40% from their 2024 peak, as investors questioned the durability of traditional software in an era of rapidly advancing artificial intelligence. Workday charges broadly per employee who uses its software, a model that looks strong when companies are hiring but less certain when AI agents begin replacing human seats.
- Workday stock reaches peak price
- Hg Capital agrees to take OneStream private for about $6.4B
- Silver Lake and Workday hold confidential discussions about a potential deal
- Reuters reports the talks; Workday shares surge and close at $206.45, market value around $51.1B
Broader buyout landscape
Private equity firms have largely stayed on the sidelines of large software buyouts in 2026, as concerns over AI have made it harder to assess the future growth and value of traditional software companies. That has contributed to a dearth of large software take-private deals this year. Hg Capital agreed in January to take financial software maker OneStream private for about $6.4 billion, one of the larger software buyouts announced this year.
A potential acquisition of Workday would be significantly larger, making it one of the biggest tests yet of private equity appetite for traditional software businesses as AI reshapes the industry. The deal would also follow Thoma Bravo's agreement to acquire payroll software provider Dayforce in a transaction valued at about $12.3 billion, according to RTE. Handelsblatt reported the Dayforce deal at roughly 16 billion, likely reflecting a euro-denominated figure.
Workday's footprint
Workday employs around 2,200 people in Ireland, according to RTE. The company is headquartered in Pleasanton, California, and specializes in cloud-based HR and financial management software for enterprises. Silver Lake has a history of investing in technology and software companies, including Dell Technologies and cloud software businesses. No competing bidders have surfaced and nothing has been signed, so the $43 billion figure should be read as a reported valuation rather than a finalized agreement.
