Silver Lake in Talks to Acquire Workday
Silver Lake is in discussions to acquire Workday, triggering a surge in shares as investors weigh the impact of AI on enterprise software.
Shares of Workday surged between 18% and 25% starting August 13 following reports that private equity firm Silver Lake is in talks to acquire the human resources and financial management software provider. The potential transaction would be one of the largest software buyouts in history, pushing Workday's market capitalization from roughly $43 billion to approximately $51.1 billion.
Discussions have been ongoing for several months, though neither party has officially commented and there is no guarantee a deal will materialize. Silver Lake may seek additional investors to finance the acquisition, mirroring its previous partnership with Saudi Arabia’s Public Investment Fund for the purchase of Electronic Arts.
The news reversed Workday's year-to-date losses, bringing the stock to a 3% gain for the year after it had previously fallen approximately 25%. This decline was driven by investor fears that artificial intelligence could disrupt software-as-a-service business models by enabling cheaper competitors or internal customer solutions. Analysts view the potential buyout as a signal that these AI risks for large-scale enterprise software may be overdone.
Workday recently underwent leadership changes in February when co-founder Aneel Bhusri returned as CEO to replace Carl Eschenbach and lead the company's AI strategy. While fiscal 2025 revenue reached $9.6 billion, growth slowed to 13% from 16% the previous year.
