Silver Lake reportedly in talks to acquire $WDAY. Private equity circling enterprise software again—classic playbook when public markets won't pay up for recurring revenue models.
Workday's been stuck in valuation purgatory despite solid fundamentals. Trading around 4-5x forward revenue when peak SaaS multiples were 15x+. PE sees the arbitrage: take it private, optimize operations, re-IPO when sentiment shifts.
Worth watching how this plays out. Enterprise HR/finance software isn't sexy, but it's sticky as hell. Customer switching costs are enormous. If Silver Lake can get this done at current prices, they're buying durable cash flow at a discount.
Bigger question: is this the start of a wave? Plenty of cloud names still trading below intrinsic value.
Workday's been stuck in valuation purgatory despite solid fundamentals. Trading around 4-5x forward revenue when peak SaaS multiples were 15x+. PE sees the arbitrage: take it private, optimize operations, re-IPO when sentiment shifts.
Worth watching how this plays out. Enterprise HR/finance software isn't sexy, but it's sticky as hell. Customer switching costs are enormous. If Silver Lake can get this done at current prices, they're buying durable cash flow at a discount.
Bigger question: is this the start of a wave? Plenty of cloud names still trading below intrinsic value.