Inside Alts: Software-buyout market thawing — here's what you need to know
Speakers
Deirdre Bosa
— Anchor/Reporter, CNBC Tech Check
Brian Sullivan
— Anchor, CNBC (Last Call / Power Lunch)
Summary
CNBC's Inside Alts examines whether the software buyout market is thawing after Silver Lake was reportedly in talks to buy Workday. KeyBanc highlighted GitLab, UiPath, PTC, and Procore as potential takeover targets, but UBS and other analysts pushed back on hopes for a near-term buyout surge. The discussion emphasizes a bid-ask gap: private equity wants lower valuations while software CEOs are reluctant sellers, leaving Workday deal uncertainty high.
- Software buyouts fell to an annualized roughly quarter of 2025's $171B pace.
- Silver Lake is reportedly in talks to acquire Workday in what could be one of the largest software buyouts.
- KeyBanc highlighted GitLab, UiPath, PTC, and Procore as potential takeover candidates.
- UBS said PE contacts do not signal a near-term software buyout surge due tight credit and AI disruption risk.
- Deutsche and BTIG downgraded Workday, calling buyout optimism overdone.
- Software valuations have reset lower, but CEOs are unwilling sellers at lower valuations.
- Financing concerns and founder-CEO dynamics add uncertainty to a Workday deal.
Ideas
Workday buyout could set software floor.
The software buyout thaw is questionable: software valuations have reset lower, private equity wants to buy at lower prices, but CEOs are unwilling sellers; Workday's founder-CEO just returned and is unlikely to sell while executing a turnaround, while financing concerns and higher valuations add to deal uncertainty.
Takeover candidates GitLab, UiPath, PTC, Procore.
KeyBanc highlighted GitLab, UiPath, PTC, and Procore as potential software takeover candidates because a Workday deal could set a floor for other software names and spark buyout interest.
