An Abu Dhabi Investment Authority (Adia) subsidiary will take a “significant” minority stake in HR software provider Dayforce as part of a USD 12.3 bn buyout led by private equity firm Thoma Bravo, according to a statement. The transaction, expected to close early next year subject to stockholder and regulatory approval, will also see Dayforce go private. It’s not clear how much Adia invested in the transaction.

Under the terms of the agreement, Dayforce shareholders will receive USD 70 per share in banknotes, valuing the equity at about USD 11.2 bn, according to Reuters. The offer represents a 32.4% premium to the company’s closing price on 15 August, when reports of transaction talks first surfaced. Including debt, the agreement values Dayforce at USD 12.3 bn.

Relief for Dayforce? Dayforce — formerly Ceridian HCM Holding — has lost around 7% of its market value so far this year, underperforming peers, though its stock rose c.2% after the announcement. Analysts say the buyout will ease its debt burden and give it room to accelerate AI product development and expand internationally.

“Going private gives us more space, flexibility and resources to go much deeper on what matters the most, which is accelerating our focus on being that AI leader in [human capital management]," CEO Davis Ossip said.

REFRESHER- This isn’t Adia’s first interaction with Thoma Bravo. Earlier in May, the sovereign fund finalized its acquisition of a significant minority stake in US data analytics firm Qlik, where Thoma Bravo remains the majority shareholder. That agreement was valued at around USD 1 bn.

Adia likes big data firms: The fund also joined a consortium including asset managers BlackStone and Vista last year to acquire software provider Smartsheet for USD 8.4 bn.

ADVISORS- Goldman Sachs & Co and JP Morgan Securities are acting as financial advisors to Thoma Bravo, with Kirkland & Ellis providing counsel. Dayforce tapped Wachtell, Lipton, Rosen & Katz for legal advice and Evercore as its financial advisor.

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