Private equity giant Thoma Bravo is reportedly circling Dayforce, a $1.76B cloud HCM leader, in what could be a landmark deal reshaping enterprise software.

(NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, announced today that it is engaged in advanced discussions with Thoma Bravo regarding a potential acquisition of Dayforce by Thoma Bravo for US$70 per share.

The deal will likely be completed by selling control to Thomas Bravo at a valuation of $5 billion and by injecting hundreds of millions of dollars into the company. At this stage, it is unknown what the holding percentage of existing shareholders will be.

HR software provider Dayforce is in advanced talks to be acquired by private equity firm Thoma Bravo at a rate of $70 per share. The acquisition highlights significant consolidation trends in the HR technology sector,

Private equity group Thoma Bravo secured carte blanche from backers of its latest funds for it to allocate a cut of buyout deals to other investors, in the latest sign of how some firms are adapting to rapidly changing dynamics in the industry.

The move will refinance the company’s existing broadly syndicated debt and pay out a dividend, according to people with knowledge of the matter.