Private equity firm Silver Lake is considering acquiring payroll platform Workday in what would be one of the largest software acquisitions ever. Workday shares jumped 18% following the news, lifting its market value to $51 billion from about $43 billion. The potential deal is seen by several investors and analysts as a vote of confidence for the software sector after a winter slump driven by artificial intelligence, dubbed « SaaS-mageddon ». Wells Fargo expects more such transactions, particularly for companies that maintain business record systems. However, some analysts caution that lower quality software names should not benefit uniformly from reports of Workday-Silver Lake talks.
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