Possible Workday Buyout Could Kickstart Software M&A

Dow Jones
08/15

1329 ET - A possible acquisition of Workday by private-equity firm Silver Lake, as reported by Reuters, could "provide a major wake-up call for the sector," Truist analysts say in a note. "While one deal doesn't make a trend, we think a transaction of this magnitude could reopen the conversation around sponsor or even strategic acquirer appetite for software, particularly following significant valuation compression across the sector," the analysts say. They add that the sector "could be at a tipping point for renewed software M&A and SaaS consolidation." Workday surged nearly 18% Thursday following the report, and is currently off 3%.

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