Workday shares rose more than 20% amid reports of a possible acquisition by Silver Lake
Shares of Workday, an American developer of human resources management software, rose by more than 20% following a Reuters report that private equity firm Silver Lake is in talks regarding a potential acquisition of the company. Trading in Workday shares was briefly halted during the afternoon session.
Following the news, Workday’s market capitalization exceeded $53 billion. Workday and Silver Lake did not immediately respond to a request for comment from CNBC.
According to CNBC, Workday’s stock has fallen about 3% since the start of the year and 7% compared to a year ago. Software companies have been under pressure in recent months due to concerns that artificial intelligence tools could disrupt their business models.
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In March, Workday co-founder Anil Bhusri resumed his role as CEO after Carl Eschenbach stepped down from the position. Bhusri had previously served as CEO and co-CEO of the company.
Analyst Brent Till told CNBC that Bhusri and Egon Durban of Silver Lake are well acquainted thanks to their numerous connections. According to the analyst, a potential deal could make sense given the significant decline in software company stock prices.
