Silver Lake’s reported takeover talks for Workday have set a valuation benchmark for enterprise software mergers, with an estimated bid of roughly $224 per share implying a 15x free cash flow multiple for Workday’s fiscal 2028.
The potential deal, first reported by Reuters on Aug. 13, 2026, triggered a 25% surge in Workday’s stock and a broader rally in European software names the following day. Nemetschek advanced 9.4% and Sage gained 3.5%, reflecting investor optimism that private equity interest could extend to other undervalued infrastructure platforms.
Workday, which reported adjusted earnings per share of $2.75 for its fiscal second quarter on Aug. 27, 2026—beating estimates of $2.61—saw its shares trade flat in after-hours trading. Subscription revenue reached $2.47 billion, slightly above the $2.46 billion consensus. During the earnings call, management declined to comment on acquisition speculation, a stance often interpreted as indicative of ongoing deal negotiations.
Analysts at KeyBanc, led by Jason Celino, estimate the implied valuation at around $43 billion for Workday, aligning with the firm’s 15x FY28 EV/FCF framework. The potential takeover price would mark a premium to Workday’s current trading levels, reinforcing the view that private equity sees enterprise software—particularly AI-enabled platforms—as undervalued relative to public market multiples.
Truist Securities has identified a list of software targets that could attract similar interest, categorizing them into an “A List” of firms facing activist pressure or recent underperformance—including Commvault, Elastic, Five9, GitLab, HubSpot, UiPath, Varonis, and Zeta Global—and a “B List” of established franchises such as Dynatrace, Intapp, JFrog, Klaviyo, Paylocity, Qualys, and Tenable. ServiceNow and Atlassian, which completed large acquisitions in 2025, are viewed as unlikely buyers in the near term due to integration efforts.
Workday’s recent acquisitions, including talent acquisition AI platform Paradox and low-code integration tool Pipedream, underscore its focus on AI-driven enterprise solutions. The company’s refusal to address deal speculation during its earnings call further fueled market speculation, with investors prioritizing takeover narratives over operational updates.
