Silver Lake in Talks to Acquire Workday for $43 Billion

Private equity firm Silver Lake is in discussions to acquire Workday, the cloud-based enterprise software company, in a potential deal valued at approximately $43 billion. The talks, which have been ongoing for several months, could result in one of the largest software buyouts in history if completed. However, sources familiar with the matter caution that the negotiations are preliminary and there is no guarantee an agreement will be reached.

The reported valuation would make the transaction a landmark deal for the private equity industry and a significant test of investor confidence in traditional software companies. Workday's shares surged on the news, jumping nearly 18% before trading was halted multiple times. The stock closed at $206.45 on Thursday, boosting the company's market capitalization to around $51.1 billion. The sharp rally reflects both the premium of the reported offer and the extent to which the stock had previously declined.

Workday's shares had fallen approximately 15% year-to-date and more than 40% from their 2024 peak before the buyout report emerged. The decline has been driven by broader investor concerns that the traditional software-as-a-service...