Private-equity giant Silver Lake is in talks to acquire Workday, a transaction that could rank among the largest software buyouts ever and would put one of corporate America’s most widely used human-resources platforms in private hands.

Workday had a market value of about $43 billion before news of the talks broke Thursday. Its shares then surged 17.8% to $206.45, lifting the company’s value to roughly $51 billion.

The discussions have been taking place in recent months and no final agreement has been reached. Silver Lake may bring in additional investors to help finance a transaction of that size.

Workday provides cloud software used by large companies for payroll, human resources, finance and workforce management. It serves more than 11,500 customers globally, making it one of the most deeply embedded enterprise-software providers in corporate back offices.

That is what makes the potential deal especially important.

Software stocks have been under pressure this year as investors question how much artificial intelligence could disrupt traditional subscription-based software. If AI tools can automate more HR, finance, coding and administrative work, some of the software businesses that once commanded premium valuations may no longer deserve them.

Silver Lake appears to see the decline differently.

A takeover of Workday at a valuation north of $50 billion would amount to a major bet that enterprise software still has substantial long-term value — even as AI changes how those products are built and used.

It could also have a broader market impact.

If one of the world’s largest technology-focused private-equity firms is willing to pursue Workday after a prolonged software selloff, investors may begin reassessing other beaten-down enterprise-software companies as potential takeover candidates.

Workday’s stock briefly jumped as much as 30% intraday Thursday after the buyout report surfaced before finishing the session up nearly 18%.

There is still no guarantee a deal gets done.

But the market reaction shows how quickly the narrative around software can change: one large private-equity bid can turn an industry investors viewed as vulnerable to AI disruption into a sector suddenly filled with takeover potential.

JBizNews Desk | Silicon Valley

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