By Rajwa Quasim
Private equity firm Silver Lake is in talks to acquire human resources and financial management software company Workday in what could become one of the largest software buyouts on record. The deal could mark a turning point for the software sector, which is facing growing pressure from the rise of artificial intelligence.
Before Reuters first reported on the potential deal, Workday had a market value of about $43 billion, and shares had fallen nearly 15% this year. Additionally, the stock was 40% down from its peak in 2024. As soon as news broke of the deal, Workday shares surged by 18%, lifting its market value to nearly $51.1 billion. The shares were traded marginally in green on Friday’s pre-market trade after the 18% surge the previous day.
Sources told Reuters that the talks have been ongoing for several months, although there is no guarantee that a deal will be reached. The people familiar with the matter spoke on condition of anonymity because the discussions are confidential. Silver Lake could also bring in additional investors to help finance the transaction.
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According to Jefferies’ analysts, Workday could have more room to pursue an aggressive artificial intelligence strategy and reignite revenue growth if it is taken private by Silver Lake. They said, “We believe Workday’s business is unlikely to be displaced by AI and that becoming a private company could help accelerate its AI transition, eventually driving revenue reacceleration and operating margin expansion.”
The reports come as investors in traditional software companies worry that the AI boom could reduce demand for conventional software applications, as AI tools can now automate tasks that were previously handled by these applications. This concern has contributed to a decline in software buyouts in the market.
Workday has continued to grow, but its pace has slowed in recent years. The company was founded by Aneel Bhusri and David Duffield in 2005 and went public in 2012. It generated about $9.6 billion in revenue and $2.9 billion in operating cash flow in fiscal 2025. The company serves more than 11,500 customers, including giants such as Netflix. Aneel Bhusri once again took over as CEO in February 2026 as the company faced pressure from the growing influence of AI and concerns about its impact on the traditional software sector. He replaced Carl Eschenbach, who had served as CEO for nearly three years.
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If the deal takes place, it could challenge the general “SaaSpocalypse” view, a belief that AI will disrupt traditional software firms through market disruption and sharp sell-offs of stocks amid fears that it will undermine recurring revenue models.
Last year, Silver Lake teamed up with Saudi Arabia’s Public Investment Fund and Affinity Partners on a $55 billion deal to take Electronic Arts private. The firm has also invested in technology and software companies such as Dell Technologies, VMware and Qualtrics.
The news comes as Thoma Bravo signed an agreement to acquire payroll software provider Dayforce in a deal worth $16 billion.