Aug 21 (Reuters) -

HR software provider Dayforce ( DAY ) said on Thursday

buyout firm Thoma Bravo will take it private in a $12.3 billion

deal, including debt.

The offer represents a premium of 32.4% based on the stock's

closing price on August 15, when news of the deal talks was

first reported.

Under the terms of the deal, Dayforce ( DAY ) shareholders will

receive $70 per share in cash, representing an equity value of

$11.18 billion, according to Reuters calculations.

The software sector has emerged as an investment target

due to resilient subscription services and recurring revenue in

an economy weighed down by a

deteriorating

labor market, trade tariffs and erratic spending.

Dayforce ( DAY ), which rebranded from Ceridian HCM Holding last

year, faces strong competition in the industry, with enterprises

preferring more established companies with larger operations.

A wave of deals in the human capital management industry

in recent years signals a shift toward AI-driven,

single-platform solutions, with acquisitions aimed at

consolidating and enhancing the tools offered to clients.

Paychex ( PAYX ) announced its acquisition of rival

Paycor for

$4.1 billion

at the start of the year, while Automatic Data Processing

acquired WorkForce Software last year for about

$1.2 billion

.

The transaction, which includes a minority investment from a

subsidiary of the Abu Dhabi Investment Authority, is expected to

close early next year, Dayforce ( DAY ) said.

Analysts have said a buyout would provide Dayforce ( DAY ) some

relief from its debt load, while Thoma Bravo's deep pockets

would help the company accelerate AI development and expand

internationally.

Thoma Bravo, which had about $184 billion in assets

under management as of March 31, is among the largest

software-focused investors globally. The private equity firm has

acquired or invested in more than 530 software and technology

companies.