Workday’s stock jumps 17% on report of Silver Lake buyout discussions
Shares of the human resources management software company Workday Inc. jumped almost 18% today after a report emerged that it’s holding acquisition talks with the private equity firm Silver Lake.
Reuters said Silver Lake is prepared to pay up to $43 billion to acquire Workday, an amount that would make it one of the largest-ever buyouts in the software industry. The talks have reportedly been ongoing for a couple of months, but there is no guarantee that a deal will be done, according to Reuters’ source, who spoke anonymously due to the confidential nature of the discussions.
Workday, based in Pleasanton, California, had a market capitalization of around $43 billion before news of the talks became public, sending the stock higher. Workday’s shares closed at $206.45 on Thursday, boosting its value to around $51.1 billion on a day where trading was suspended multiple times.
Silver Lake could bring additional investors on board to help finance the takeover, Reuters added, noting that it previously teamed up with Affinity Partners and Saudi Arabia’s Public Investment Fund to acquire the video game company Electronic Arts Inc. in a $55 billion deal last year.
