Silver Lake is exploring a potential acquisition of Workday that could value the cloud software provider at more than $50bn, according to a report by Reuters citing unnamed people familiar with the discussions.
The talks over what would be one of the largest software buyouts ever have been ongoing in recent months and remain preliminary, with no certainty that an agreement will be reached, the sources said. Workday’s shares jumped almost 18% on Thursday following news of the potential transaction, lifting its market capitalisation to roughly $51.1bn.
The private equity firm could bring in other investors to help fund the acquisition, according to one of the sources. Silver Lake has previously partnered with Saudi Arabia’s Public Investment Fund and Affinity Partners on major technology transactions, including the roughly $55bn take-private of Electronic Arts.
Workday’s shares had been under pressure before the reports emerged, falling around 15% since the start of the year and more than 40% from their 2024 high. Investors have increasingly questioned whether AI could erode the competitive position and pricing power of traditional software vendors.
Workday was founded in 2005 by former PeopleSoft executives Aneel Bhusri and David Duffield. The company provides cloud-based applications covering human resources, payroll, finance, procurement, planning and other corporate functions, serving more than 11,500 customers worldwide.
The company generated $9.6bn of revenue in fiscal 2025, representing 13% growth, while operating cash flow rose 19% to $2.9bn. However, its rate of expansion has slowed from 16% in the prior year, adding to investor concerns about the company’s longer-term growth trajectory.
