WEBVTT 00:00:00.000 --> 00:00:02.100 Welcome back to the Deep Dive. Today, you've 00:00:02.100 --> 00:00:05.379 handed me this really fascinating set of documents. 00:00:05.839 --> 00:00:08.699 It details what I can only call the ultimate 00:00:08.699 --> 00:00:11.300 corporate glow up. That's a good way to put it. 00:00:11.359 --> 00:00:12.900 I mean, it's a company that managed to completely 00:00:12.900 --> 00:00:16.440 transform itself from, you know, a legacy computing 00:00:16.440 --> 00:00:19.339 conglomerate into this high -flying integrated 00:00:19.339 --> 00:00:22.199 cloud software giant. And it's a journey that 00:00:22.199 --> 00:00:25.420 spans... decades so the subject of our deep dive 00:00:25.420 --> 00:00:28.879 today is dayforce inc it's a name that might 00:00:28.879 --> 00:00:31.320 still feel a little new to some people especially 00:00:31.320 --> 00:00:34.039 since they just rebranded from their uh their 00:00:34.039 --> 00:00:36.899 much older identity ceridian right ceridian is 00:00:36.899 --> 00:00:38.359 the name most people would probably still recognize 00:00:38.359 --> 00:00:42.060 exactly and our mission today is to really dig 00:00:42.060 --> 00:00:43.939 into that history. We're going to excavate all 00:00:43.939 --> 00:00:47.420 these layers of corporate splits, acquisitions, 00:00:47.420 --> 00:00:49.679 and these periods of private ownership that all 00:00:49.679 --> 00:00:53.479 led to this massive market -defining event just 00:00:53.479 --> 00:00:55.719 last year. It is. I mean, it's a perfect case 00:00:55.719 --> 00:00:58.060 study in corporate transformation. What we're 00:00:58.060 --> 00:01:00.380 really tracking here is this incredibly complex 00:01:00.380 --> 00:01:03.060 evolution that goes back, believe it or not, 00:01:03.060 --> 00:01:06.959 nearly 70 years. 70? Yeah. And it all culminates 00:01:06.959 --> 00:01:09.780 in the company becoming a, you know, a leading 00:01:09.780 --> 00:01:12.659 American tech specialist in what's called human 00:01:12.659 --> 00:01:16.079 capital management or HCM software. OK, HCM. 00:01:16.099 --> 00:01:17.900 So we're talking HR, payroll, that kind of thing. 00:01:17.959 --> 00:01:21.099 Exactly. And Dayforce Inc. is now I mean, it's. 00:01:21.509 --> 00:01:24.189 Firmly entrenched in the tech sector, it's trading 00:01:24.189 --> 00:01:27.230 publicly as day on both the New York Stock Exchange 00:01:27.230 --> 00:01:30.390 and the TSX. It even recently got a spot in the 00:01:30.390 --> 00:01:33.269 S &P 500. Which is a huge signal of its importance 00:01:33.269 --> 00:01:35.390 to the market. Right. It's a massive stamp of 00:01:35.390 --> 00:01:38.170 approval. It tells you it's a major player. And 00:01:38.170 --> 00:01:39.810 the reason we're digging into this now and why 00:01:39.810 --> 00:01:41.750 it's such a compelling story of value creation 00:01:41.750 --> 00:01:44.530 is that headline event you just mentioned. Let's 00:01:44.530 --> 00:01:46.849 start with the payoff, the anchor point that 00:01:46.849 --> 00:01:49.170 really defines the success of this whole transformation. 00:01:49.609 --> 00:01:51.200 Right. Let's start with the client. It's the 00:01:51.200 --> 00:01:53.420 best way to frame the story. That moment arrived 00:01:53.420 --> 00:01:57.459 in August of 2025 with this just blockbuster 00:01:57.459 --> 00:02:00.239 announcement. OK. The private equity powerhouse 00:02:00.239 --> 00:02:03.099 Tama Bravo reached an agreement to acquire Dayforce. 00:02:03.200 --> 00:02:06.200 And the deal was valued at a staggering $12 .3 00:02:06.200 --> 00:02:11.479 billion. $12 .3 billion. I mean, that's not just 00:02:11.479 --> 00:02:14.060 a big number for this specific sector for HCM 00:02:14.060 --> 00:02:17.219 software. That is a landmark transaction. It 00:02:17.219 --> 00:02:19.340 absolutely is. And you have to unpack that figure 00:02:19.340 --> 00:02:21.860 because it says a lot. It really does. I mean, 00:02:21.900 --> 00:02:24.879 $12 .3 billion for an HR platform tells me two 00:02:24.879 --> 00:02:27.379 things. First, the value of streamlining how 00:02:27.379 --> 00:02:30.219 you manage people has never been higher. And 00:02:30.219 --> 00:02:33.479 second, Dayforce must have achieved just incredible 00:02:33.479 --> 00:02:37.139 global scale and technical integration to justify 00:02:37.139 --> 00:02:39.500 that price tag. You've hit it on the head. And 00:02:39.500 --> 00:02:42.099 it wasn't just a standard buyout either. The 00:02:42.099 --> 00:02:43.919 sources highlight something really important. 00:02:44.349 --> 00:02:46.750 The deal included a significant minority investment 00:02:46.750 --> 00:02:49.629 from the Abu Dhabi Investment Authority, or ADIA. 00:02:49.969 --> 00:02:52.969 Okay, now that is critical context. ADIA is one 00:02:52.969 --> 00:02:55.270 of the world's largest sovereign wealth funds. 00:02:55.509 --> 00:02:58.490 Exactly. And they are known for seeking out these 00:02:58.490 --> 00:03:01.430 very long -term stable assets. They often look 00:03:01.430 --> 00:03:04.289 at them less like risky tech stocks and more 00:03:04.289 --> 00:03:07.550 like essential infrastructure. Like toll roads 00:03:07.550 --> 00:03:09.669 or power plants. Precisely. Things that generate 00:03:09.669 --> 00:03:12.430 steady, predictable cash flow. So if you have 00:03:12.430 --> 00:03:14.840 a massive sovereign... Wealth Fund, partnering 00:03:14.840 --> 00:03:18.020 with a top -tier PE firm like Tama Bravo on a 00:03:18.020 --> 00:03:21.419 tech deal. It suggests they see the subscription 00:03:21.419 --> 00:03:25.810 revenue from Dayforce as incredibly stable. Almost 00:03:25.810 --> 00:03:28.110 recession proof. That's the bet they're making. 00:03:28.449 --> 00:03:30.370 Businesses have to pay their employees. They 00:03:30.370 --> 00:03:32.889 have to maintain compliance, you know, regardless 00:03:32.889 --> 00:03:34.810 of what the broader economy is doing. Right. 00:03:34.889 --> 00:03:37.210 It's a non -negotiable expense. Exactly. So they're 00:03:37.210 --> 00:03:39.330 buying this recurring subscription revenue stream 00:03:39.330 --> 00:03:42.409 from software that handles mission critical functions. 00:03:42.830 --> 00:03:45.469 And it's the ultimate validation that the whole 00:03:45.469 --> 00:03:48.349 strategy Ceridian and Dayforce executed over 00:03:48.349 --> 00:03:51.330 the past decade actually worked. They built an 00:03:51.330 --> 00:03:55.060 asset so essential and so global. that it attracts 00:03:55.060 --> 00:03:57.419 capital that's looking for stability, not just 00:03:57.419 --> 00:03:59.460 high -risk growth. And that's the dream for Sauce 00:03:59.460 --> 00:04:01.860 Company. So before we jump back in time, we really 00:04:01.860 --> 00:04:04.060 need to understand what Tom and Bravo actually 00:04:04.060 --> 00:04:07.719 bought for their $12 .3 billion. The company's 00:04:07.719 --> 00:04:11.300 brand is Dayforce, Inc. But Dayforce is also 00:04:11.300 --> 00:04:13.219 the name of the product. Correct. And that's 00:04:13.219 --> 00:04:15.699 a very deliberate strategic move we can analyze 00:04:15.699 --> 00:04:18.660 later merging the corporate identity with the 00:04:18.660 --> 00:04:21.980 platform identity. The core offering is the Dayforce 00:04:21.980 --> 00:04:25.079 cloud human capital management platform. And 00:04:25.079 --> 00:04:27.040 its unique selling proposition, the thing that 00:04:27.040 --> 00:04:29.620 makes it so valuable, is its architecture. Right. 00:04:29.680 --> 00:04:32.480 That's the key. It's built as a full suite application. 00:04:32.920 --> 00:04:35.459 The goal is to consolidate all of these different 00:04:35.459 --> 00:04:38.220 people management functions into a single unified 00:04:38.220 --> 00:04:41.279 system. OK. And when you say full suite, we're 00:04:41.279 --> 00:04:43.500 talking about solving the biggest headaches a 00:04:43.500 --> 00:04:46.279 big multinational corporation faces. Yes. All 00:04:46.279 --> 00:04:49.620 of them. The platform covers the entire employee 00:04:49.620 --> 00:04:51.720 life cycle and all the administrative burden 00:04:51.720 --> 00:04:54.120 that comes with it. This includes the really 00:04:54.120 --> 00:04:56.800 high stake stuff like, you know, precise payroll 00:04:56.800 --> 00:04:59.779 processing and complicated tax filing. The areas 00:04:59.779 --> 00:05:01.800 where if you make a mistake, it can cost you 00:05:01.800 --> 00:05:04.699 millions in fines. Huge legal penalties and fines. 00:05:04.939 --> 00:05:07.980 But it goes way beyond just compliance. It covers 00:05:07.980 --> 00:05:10.740 benefits. administration, general HR, complex 00:05:10.740 --> 00:05:13.220 workforce management. Things like scheduling, 00:05:13.379 --> 00:05:15.279 timekeeping, making sure you're following local 00:05:15.279 --> 00:05:17.800 labor laws. All of that. And then it goes into 00:05:17.800 --> 00:05:20.319 recruiting and even the more sophisticated area 00:05:20.319 --> 00:05:22.740 of talent intelligence, which involves performance 00:05:22.740 --> 00:05:25.480 tracking and predictive analytics. So the pitch 00:05:25.480 --> 00:05:27.139 to a chief financial officer is actually pretty 00:05:27.139 --> 00:05:29.860 simple. Yeah. It's stop running six different 00:05:29.860 --> 00:05:32.779 aging systems, one for time, one for payroll, 00:05:32.879 --> 00:05:36.180 one for benefits that you have to. constantly 00:05:36.180 --> 00:05:38.939 and with a lot of errors reconcile. Right. Buy 00:05:38.939 --> 00:05:41.100 our one system, get rid of the integration headache 00:05:41.100 --> 00:05:44.220 and lower your compliance risk. That is the core 00:05:44.220 --> 00:05:46.660 technical value proposition. In the old world, 00:05:46.800 --> 00:05:49.120 you know, a timekeeping system might dump a file 00:05:49.120 --> 00:05:51.610 to the payroll system once a night. If those 00:05:51.610 --> 00:05:53.470 two don't perfectly reconcile, you can introduce 00:05:53.470 --> 00:05:55.709 massive errors. And that leads to compliance 00:05:55.709 --> 00:05:58.529 violations or huge overpayments. All the time. 00:05:58.649 --> 00:06:01.470 So a truly unified single database architecture, 00:06:01.769 --> 00:06:03.930 which is what Dayforce claims to have, means 00:06:03.930 --> 00:06:06.829 that time and pay are always in sync. It dramatically 00:06:06.829 --> 00:06:09.930 reduces risk and administrative overhead. That 00:06:09.930 --> 00:06:12.670 technical superiority is what commands a premium. 00:06:12.930 --> 00:06:16.430 That sets the stage perfectly. So $12 .3 billion 00:06:16.430 --> 00:06:20.470 for a unified global people platform. But that 00:06:20.470 --> 00:06:23.209 platform has roots that go back nearly 70 years, 00:06:23.310 --> 00:06:26.290 back to the earliest clunkiest days of corporate 00:06:26.290 --> 00:06:28.930 computing. Let's rewind the clock and see how 00:06:28.930 --> 00:06:31.250 this journey began. It's a great place to start. 00:06:31.410 --> 00:06:33.850 So to really understand the day force of today, 00:06:33.990 --> 00:06:35.910 we have to look at its corporate lineage, which, 00:06:35.949 --> 00:06:37.769 as you mentioned, is really surprising. It didn't 00:06:37.769 --> 00:06:40.209 start in Silicon Valley. It started in the world 00:06:40.209 --> 00:06:43.129 of high -powered Cold War era computing. Yeah, 00:06:43.149 --> 00:06:45.569 this is where the story gets so compelling. Because 00:06:45.569 --> 00:06:49.610 this modern, you know, sleek sauce company actually 00:06:49.610 --> 00:06:52.790 descends from a technological ancestor that very 00:06:52.790 --> 00:06:55.009 few people would guess. Then it is. The Control 00:06:55.009 --> 00:06:58.939 Data Corporation, or CD. Founded way back in 00:06:58.939 --> 00:07:02.750 1957. Now, for listeners who might not be steeped 00:07:02.750 --> 00:07:05.230 in computing history, what kind of company was 00:07:05.230 --> 00:07:08.089 Controlled Data Corporation? CDC was a true pioneer. 00:07:08.170 --> 00:07:09.829 They were one of the original giants. They were 00:07:09.829 --> 00:07:12.230 deeply involved in mainframes and, crucially, 00:07:12.470 --> 00:07:15.050 supercomputers. We're talking massive machines 00:07:15.050 --> 00:07:18.329 that took up entire rooms. Entire rooms used 00:07:18.329 --> 00:07:21.350 by governments, universities, large institutions 00:07:21.350 --> 00:07:25.110 for incredibly complex calculations. They were 00:07:25.110 --> 00:07:27.689 a cornerstone of the burgeoning digital age, 00:07:27.910 --> 00:07:30.240 operating in a very capital... intensive world 00:07:30.240 --> 00:07:32.399 where manufacturing and physical assets were 00:07:32.399 --> 00:07:35.319 everything. The journey from designing supercomputers 00:07:35.319 --> 00:07:38.279 in the 50s to selling cloud payroll software 00:07:38.279 --> 00:07:41.740 in the 2020s is just an astounding strategic 00:07:41.740 --> 00:07:44.579 pivot. So what was the catalyst? What happened 00:07:44.579 --> 00:07:47.399 in 1992 that marked the official beginning of 00:07:47.399 --> 00:07:50.060 the company we're tracking? Well, by 1992, the 00:07:50.060 --> 00:07:51.800 whole world of computing had changed dramatically. 00:07:52.120 --> 00:07:54.000 I mean, personal computing was on the rise and 00:07:54.000 --> 00:07:56.420 the mainframe business was becoming a lot more 00:07:56.420 --> 00:07:58.620 complex, a lot less profitable. The writing was 00:07:58.620 --> 00:08:00.920 on the wall. It was. And the leadership at CDC 00:08:00.920 --> 00:08:04.120 made a really definitive strategic choice. They 00:08:04.120 --> 00:08:07.100 executed a major corporate restructuring to shift 00:08:07.100 --> 00:08:09.759 away from that legacy hardware business and focus 00:08:09.759 --> 00:08:12.339 entirely on information services. And that move 00:08:12.339 --> 00:08:14.819 birthed the Ceridian Corporation. That's the 00:08:14.819 --> 00:08:17.120 moment. Ceridian is born from the services side 00:08:17.120 --> 00:08:20.240 of CDC. So this wasn't just a name change. This 00:08:20.240 --> 00:08:23.540 was a deliberate extraction of the most scalable 00:08:23.540 --> 00:08:26.680 parts of Control Data Corporation. So what happened 00:08:26.680 --> 00:08:28.920 to the actual computer manufacturing side of 00:08:28.920 --> 00:08:31.720 the business? It was a very clean spinoff. The 00:08:31.720 --> 00:08:34.059 original capital -intensive computer product 00:08:34.059 --> 00:08:36.279 business was separated out and formed into a 00:08:36.279 --> 00:08:39.100 new company called Control Data Systems, or CDS. 00:08:39.320 --> 00:08:42.779 And they kept the legacy Control Data name. While 00:08:42.779 --> 00:08:45.759 the new company, Ceridian, was intentionally 00:08:45.759 --> 00:08:49.139 structured to focus on data, on processing, on 00:08:49.139 --> 00:08:51.679 services, the intellectual property, not the 00:08:51.679 --> 00:08:53.799 physical machines. Precisely. And this is a critical 00:08:53.799 --> 00:08:56.759 analysis point. This move in 1992, decades before 00:08:56.759 --> 00:08:59.139 anyone was even using the term SAWS, was an act 00:08:59.139 --> 00:09:02.360 of, well... It really was. They recognized that 00:09:02.360 --> 00:09:05.279 the long -term value wasn't in the heavy, depreciating 00:09:05.279 --> 00:09:07.740 assets of hardware manufacturing. It was in the 00:09:07.740 --> 00:09:10.159 highly scalable, recurring revenue potential 00:09:10.159 --> 00:09:13.019 of information services and software. Let's just 00:09:13.019 --> 00:09:15.519 contrast the economics there for a second. CDC 00:09:15.519 --> 00:09:18.279 needed billions in fixed capital for factories, 00:09:18.500 --> 00:09:21.440 for R &D on hardware, for maintenance. Right. 00:09:21.500 --> 00:09:24.700 Whereas Ceridian... By contrast, needed recurring 00:09:24.700 --> 00:09:27.480 investment in intellectual property, in software 00:09:27.480 --> 00:09:30.460 code, data centers, and human talent. They were 00:09:30.460 --> 00:09:33.200 shedding capital intensity in favor of scalability. 00:09:33.419 --> 00:09:36.679 That one choice, that foundational decision in 00:09:36.679 --> 00:09:40.220 1992, paved the way for the Dayforce cloud strategy 00:09:40.220 --> 00:09:42.799 20 years later. They were betting on services 00:09:42.799 --> 00:09:46.440 over steel. A bet that obviously paid off. It 00:09:46.440 --> 00:09:48.539 really shows that corporate success often means 00:09:48.539 --> 00:09:51.320 shedding that heavy foundational past so you 00:09:51.320 --> 00:09:53.779 can be light enough to adapt to the future. Ceridian 00:09:53.779 --> 00:09:56.360 inherited that service mindset, and it proved 00:09:56.360 --> 00:09:58.600 to be far more resilient than the hardware legacy 00:09:58.600 --> 00:10:00.860 it left behind. And that service mindset eventually 00:10:00.860 --> 00:10:03.539 narrowed its focus onto the most complex and 00:10:03.539 --> 00:10:06.039 recurring service need that every single business 00:10:06.039 --> 00:10:09.370 faces, managing its people and their money. Okay, 00:10:09.409 --> 00:10:11.929 let's transition now into what were some pretty 00:10:11.929 --> 00:10:14.570 turbulent years, because the company didn't just 00:10:14.570 --> 00:10:17.169 go straight from that 1992 restructuring to a 00:10:17.169 --> 00:10:21.039 big IPO. This next phase from about 2001 to 2018, 00:10:21.220 --> 00:10:23.019 it's like a master class in corporate surgery. 00:10:23.200 --> 00:10:25.320 It absolutely is. It's all about distilling a 00:10:25.320 --> 00:10:27.320 diversified company down to a pure play high 00:10:27.320 --> 00:10:29.820 growth asset. And this period is defined by these 00:10:29.820 --> 00:10:32.320 strategic separations and some really critical 00:10:32.320 --> 00:10:34.399 acquisitions. It was not a straight line at all. 00:10:34.500 --> 00:10:37.759 No, far from it. The first major separation happens 00:10:37.759 --> 00:10:40.960 in March 2001. It's known as the Arbitron split. 00:10:41.220 --> 00:10:43.419 Right. And can you explain the mechanics of that 00:10:43.419 --> 00:10:45.360 split? Because the names get swapped around in 00:10:45.360 --> 00:10:47.860 a kind of confusing way. It's basically. a swap 00:10:47.860 --> 00:10:50.840 to separate two very different businesses. The 00:10:50.840 --> 00:10:53.700 old Ceridian Corporation changed its name to 00:10:53.700 --> 00:10:57.200 Arbitron, and Arbitron focused on media and audience 00:10:57.200 --> 00:10:59.480 measurement services. Like TV ratings and that 00:10:59.480 --> 00:11:01.830 sort of thing. Exactly. The rest of the existing 00:11:01.830 --> 00:11:04.129 businesses, the parts that held the human resources 00:11:04.129 --> 00:11:06.809 services and also the com data payments division, 00:11:07.049 --> 00:11:09.590 they took the Ceridian name. They were basically 00:11:09.590 --> 00:11:12.330 splitting their focus between measuring audiences 00:11:12.330 --> 00:11:15.690 and managing workforces. So the HR services business 00:11:15.690 --> 00:11:18.190 kept that Ceridian brand and continued on its 00:11:18.190 --> 00:11:21.570 path. And then just six years later, another 00:11:21.570 --> 00:11:24.299 major upheaval. Private equity comes knocking. 00:11:24.480 --> 00:11:27.100 Yes, the private equity interlude of 2007. This 00:11:27.100 --> 00:11:29.460 is a huge moment. Ceridian was acquired for a 00:11:29.460 --> 00:11:32.620 very substantial U .S. $5 .3 billion. And who 00:11:32.620 --> 00:11:35.399 are the buyers? It was a consortium led by Thomas 00:11:35.399 --> 00:11:38.220 H. Lee Partners and Fidelity National Financial, 00:11:38.440 --> 00:11:41.539 or FNF. Now, wait a minute. Going private in 00:11:41.539 --> 00:11:46.820 2007 for five... $0 .3 billion, right on the 00:11:46.820 --> 00:11:49.720 cusp of the global financial crisis. Wasn't that 00:11:49.720 --> 00:11:52.379 a massive risk for the buyers? How did they manage 00:11:52.379 --> 00:11:55.559 to navigate that downturn while trying to restructure 00:11:55.559 --> 00:11:58.259 the company? It was an incredibly risky time 00:11:58.259 --> 00:12:00.940 to do a leveraged buyout. But, you know, the 00:12:00.940 --> 00:12:03.059 decision to take Ceridian private was actually 00:12:03.059 --> 00:12:05.559 the key. It allowed the new owners to undertake 00:12:05.559 --> 00:12:08.139 this significant long term restructuring away 00:12:08.139 --> 00:12:09.980 from the quarter to quarter earnings pressures 00:12:09.980 --> 00:12:12.179 of the public market. Right. When you're public, 00:12:12.299 --> 00:12:14.759 you can't really make these massive, risky internal 00:12:14.759 --> 00:12:17.320 bets without Wall Street punishing you. Exactly. 00:12:17.419 --> 00:12:19.720 Going private gave them the capital and more 00:12:19.720 --> 00:12:21.320 importantly, the breathing room to completely 00:12:21.320 --> 00:12:24.039 overhaul the company's technology stack. And 00:12:24.039 --> 00:12:25.840 the immediate consequence, of course. was that 00:12:25.840 --> 00:12:27.960 Ceridian Common Stocks stopped trading on the 00:12:27.960 --> 00:12:30.539 NYSE. It was officially delisted in November 00:12:30.539 --> 00:12:33.720 of 2007. They basically entered a strategic lab 00:12:33.720 --> 00:12:37.000 hidden from public view. Right. The PE playbook 00:12:37.000 --> 00:12:39.759 was now in full effect. You buy the company, 00:12:39.899 --> 00:12:42.379 you strip out any non -core assets, you acquire 00:12:42.379 --> 00:12:46.100 new differentiating technology, and you invest 00:12:46.100 --> 00:12:49.200 aggressively for growth before hopefully taking 00:12:49.200 --> 00:12:51.740 it public again at a much higher valuation. In 00:12:51.740 --> 00:12:53.980 a single most important action they took during 00:12:53.980 --> 00:12:57.200 this private phase, was acquiring the technology 00:12:57.200 --> 00:13:00.279 that would eventually become the company's entire 00:13:00.279 --> 00:13:03.080 future identity. That defining moment was in 00:13:03.080 --> 00:13:05.820 March 2012 when Ceridian acquired the Dayforce 00:13:05.820 --> 00:13:08.559 technology. This was the inflection point. The 00:13:08.559 --> 00:13:10.659 sources specifically call it a single -sauce 00:13:10.659 --> 00:13:13.039 application designed for a whole range of HR 00:13:13.039 --> 00:13:15.039 functions. Let's just emphasize that phrase again, 00:13:15.139 --> 00:13:18.200 single -sauce application. Why was that so disruptive 00:13:18.200 --> 00:13:20.879 back in 2012? Well, because the market was still 00:13:20.879 --> 00:13:23.059 highly fragmented. Most companies were running 00:13:23.059 --> 00:13:25.860 what we call best of breed systems. So a specialized 00:13:25.860 --> 00:13:28.440 vendor for time and attendance, a completely 00:13:28.440 --> 00:13:30.360 different one for talent management, maybe a 00:13:30.360 --> 00:13:33.179 third one for payroll. Exactly. And these systems 00:13:33.179 --> 00:13:36.139 rarely talk to each other well. It led to massive 00:13:36.139 --> 00:13:38.759 integration costs and huge data integrity problems. 00:13:39.240 --> 00:13:41.480 Dayforce came in and promised one unified cloud 00:13:41.480 --> 00:13:45.220 solution for everything. HR, payroll, tax, benefits, 00:13:45.500 --> 00:13:47.879 workforce management, talent, all built from 00:13:47.879 --> 00:13:50.720 the ground up on a single database. It eliminated 00:13:50.720 --> 00:13:53.500 the data reconciliation nightmare for customers. 00:13:53.740 --> 00:13:56.259 That was the promise. And it was a powerful one. 00:13:56.460 --> 00:13:59.259 So the PE owners now had their core future asset. 00:13:59.710 --> 00:14:02.169 The next step in this corporate surgery was to 00:14:02.169 --> 00:14:04.049 make sure the corporate structure matched the 00:14:04.049 --> 00:14:06.750 high growth potential of this new Dayforce Sauce 00:14:06.750 --> 00:14:09.789 product. Which brings us to the final major separation 00:14:09.789 --> 00:14:12.990 in 2013, separating payments and HCM. And this 00:14:12.990 --> 00:14:15.250 was crucial for maximizing the eventual valuation 00:14:15.250 --> 00:14:17.850 of the company. Absolutely crucial. In October 00:14:17.850 --> 00:14:20.450 2013, Ceridian announced the legal separation 00:14:20.450 --> 00:14:22.629 of its human capital management business from 00:14:22.629 --> 00:14:25.090 its payments business, which was called Comdata. 00:14:25.470 --> 00:14:28.470 So why separate payments, Comdata, and the software, 00:14:28.669 --> 00:14:30.809 Dayforce? I mean, they're both in financial services, 00:14:30.870 --> 00:14:33.029 but they're valued very differently by the market, 00:14:33.090 --> 00:14:35.049 aren't they? Drastically differently. This is 00:14:35.049 --> 00:14:38.029 pure financial engineering. The payments business, 00:14:38.330 --> 00:14:40.769 Comdata, it operates with the financial profile 00:14:40.769 --> 00:14:43.269 of a financial services or payments company. 00:14:43.570 --> 00:14:46.590 You know, steady, but typically with lower valuation 00:14:46.590 --> 00:14:48.850 multiples. Whereas the human capital management 00:14:48.850 --> 00:14:52.299 business, with Dayforce at its core. That's a 00:14:52.299 --> 00:14:55.399 high growth SaaS business. It commands much, 00:14:55.580 --> 00:14:59.179 much higher tech valuation multiples. So by separating 00:14:59.179 --> 00:15:02.980 them, the owners created Ceridian HCM Holding 00:15:02.980 --> 00:15:06.100 Inc., a pure play software entity that could 00:15:06.100 --> 00:15:09.399 be valued very highly by tech investors, unburdened 00:15:09.399 --> 00:15:11.659 by the lower valuation of the payment segment. 00:15:11.840 --> 00:15:14.100 That is the key. Every piece of surgery they 00:15:14.100 --> 00:15:16.059 performed, splitting off Arbitron, splitting 00:15:16.059 --> 00:15:18.700 off com data, it was all designed to make the 00:15:18.700 --> 00:15:21.220 remaining HCM entity as attractive as possible. 00:15:21.289 --> 00:15:23.429 to investors who were looking for that high multiple 00:15:23.429 --> 00:15:25.750 tech growth. It was all aimed at the biggest 00:15:25.750 --> 00:15:28.009 possible exit. And tying this whole critical 00:15:28.009 --> 00:15:29.809 phase together is the leadership. We have to 00:15:29.809 --> 00:15:31.889 mention David Ostap. He's been chairman and CEO 00:15:31.889 --> 00:15:34.909 from 2013 all the way to the present. So he was 00:15:34.909 --> 00:15:37.049 the anchor who guided the company through that 00:15:37.049 --> 00:15:40.149 post -split cleanup, the massive investment into 00:15:40.149 --> 00:15:42.230 the Dayforce platform, and then the eventual 00:15:42.230 --> 00:15:44.909 reentry into the public markets. That consistency 00:15:44.909 --> 00:15:47.809 of vision is so vital during a period of such 00:15:47.809 --> 00:15:51.220 intense restructuring. and that successful distillation. 00:15:51.549 --> 00:15:54.450 That purification of the business led directly 00:15:54.450 --> 00:15:56.629 to the company reemerging from private ownership 00:15:56.629 --> 00:15:59.649 with a highly successful initial public offering, 00:15:59.809 --> 00:16:03.850 IPO, in April 2018. And it was a massive success. 00:16:03.990 --> 00:16:07.669 It raised over $400 million, and it really demonstrated 00:16:07.669 --> 00:16:09.990 that the market was starved for a highly focused, 00:16:10.049 --> 00:16:13.690 integrated cloud HCM offering. The years under 00:16:13.690 --> 00:16:15.769 private equity ownership had done their job. 00:16:15.950 --> 00:16:17.750 They streamlined the business, they focused the 00:16:17.750 --> 00:16:20.850 technology, and they set the stage for this aggressive... 00:16:20.879 --> 00:16:23.480 global expansion as a public, pure play tech 00:16:23.480 --> 00:16:25.379 stock. And that's exactly what happened next. 00:16:25.639 --> 00:16:27.679 So after the IPO, the growth trajectory just 00:16:27.679 --> 00:16:30.220 completely accelerated. Dayforce went on the 00:16:30.220 --> 00:16:32.059 offensive using its public capital to expand 00:16:32.059 --> 00:16:34.820 rapidly. Let's jump into the sheer scale of that 00:16:34.820 --> 00:16:38.139 operation and the highly targeted global acquisition 00:16:38.139 --> 00:16:40.320 strategy that followed. So we've arrived at the 00:16:40.320 --> 00:16:43.100 point where Ceridian HCM is freely focused, newly 00:16:43.100 --> 00:16:46.299 public, and just poised for global growth. Let's 00:16:46.299 --> 00:16:48.159 take a look at the financial footprint they achieved 00:16:48.159 --> 00:16:50.419 right before the final acquisition. We have the 00:16:50.419 --> 00:16:53.440 specific 2024 financial data from their annual 00:16:53.440 --> 00:16:55.860 report. Right. Looking at the 2024 financial 00:16:55.860 --> 00:16:59.080 snapshot gives us perfect insight into the strategy 00:16:59.080 --> 00:17:01.639 that would eventually attract Tama Bravo. I mean, 00:17:01.659 --> 00:17:03.720 the company had achieved substantial scale. They 00:17:03.720 --> 00:17:07.500 were reporting revenue of U .S. $1 .76 billion. 00:17:08.079 --> 00:17:11.559 $1 .76 billion. That is a massive operational 00:17:11.559 --> 00:17:14.759 size. It's huge. But the profitability metrics, 00:17:14.980 --> 00:17:17.119 they tell a very interesting story, one that's 00:17:17.119 --> 00:17:20.059 typical of this specific growth phase. So operating 00:17:20.059 --> 00:17:23.400 income was U .S. $104 million, but net income 00:17:23.400 --> 00:17:27.059 was way lower at just $18 .1 million. OK, so 00:17:27.059 --> 00:17:29.039 that's the crux of the Tama Bravo thesis right 00:17:29.039 --> 00:17:30.859 there, isn't it? When a SaaS company has almost 00:17:30.859 --> 00:17:33.319 $1 .8 billion in revenue, but these razor -thin 00:17:33.319 --> 00:17:36.920 profit margins, it signals one thing, massive 00:17:36.920 --> 00:17:40.039 aggressive reinvestment. That's exactly it. And 00:17:40.039 --> 00:17:42.700 that investment isn't just in general R &D. In 00:17:42.700 --> 00:17:45.420 the HCM world, it means continuous investment 00:17:45.420 --> 00:17:48.759 in local compliance and in integrating all these 00:17:48.759 --> 00:17:51.519 new acquisitions. Global payroll compliance is 00:17:51.519 --> 00:17:55.779 a very high fucks R &D cost. So Dama Bravo isn't 00:17:55.779 --> 00:17:58.059 buying a company that's maximized its profit 00:17:58.059 --> 00:18:00.440 yet. They're betting that once Dayforce captures 00:18:00.440 --> 00:18:02.700 enough global market share, they can flatten 00:18:02.700 --> 00:18:05.720 those heavy R &D costs, especially the cost of 00:18:05.720 --> 00:18:07.880 integrating new compliance rules and just flip. 00:18:07.980 --> 00:18:09.819 the switch on profitability. And cause those 00:18:09.819 --> 00:18:12.720 margins to expand dramatically. That's the playbook. 00:18:12.880 --> 00:18:14.839 They're buying the infrastructure and the nearly 00:18:14.839 --> 00:18:18.259 10 ,000 employees, 9 ,600 employees in 2024, 00:18:18.619 --> 00:18:22.099 to be precise, who manage this complex high revenue 00:18:22.099 --> 00:18:24.240 base. And the balance sheet backs this up, too. 00:18:24.569 --> 00:18:28.309 Total assets were over $9 .12 billion. That indicates 00:18:28.309 --> 00:18:30.829 a very financially solid operation, which you'd 00:18:30.829 --> 00:18:32.950 need to support a platform running payroll all 00:18:32.950 --> 00:18:35.130 over the world. Absolutely. But that global footprint, 00:18:35.369 --> 00:18:37.529 it wasn't built organically. It was assembled 00:18:37.529 --> 00:18:40.150 through a very strategic and rapid global expansion 00:18:40.150 --> 00:18:43.309 via acquisition spree. And the strategy was clearly 00:18:43.309 --> 00:18:45.950 focused on one thing. Yeah. Buying local compliance 00:18:45.950 --> 00:18:48.720 knowledge in geographic scale. This is a textbook 00:18:48.720 --> 00:18:51.819 M &A strategy for entering a highly localized 00:18:51.819 --> 00:18:55.099 service market like global HR. You can't just, 00:18:55.180 --> 00:18:57.640 you know, translate your U .S. product into Spanish 00:18:57.640 --> 00:18:59.720 or French and call it a day. No, you need to 00:18:59.720 --> 00:19:02.740 handle local labor awards, tax codes, regulatory 00:19:02.740 --> 00:19:05.779 filings, all of it. And the fastest, most effective 00:19:05.779 --> 00:19:08.700 way to gain that expertise is to acquire the 00:19:08.700 --> 00:19:11.759 best local player in that region. So the spree 00:19:11.759 --> 00:19:14.700 began in 2019, right after the IPO, and they 00:19:14.700 --> 00:19:17.460 targeted the Asia -Pacific region first. They 00:19:17.460 --> 00:19:20.079 acquired a company called Retek. Right. Retek 00:19:20.079 --> 00:19:23.079 was an Australia -based enterprise HR software 00:19:23.079 --> 00:19:26.019 company. And Australia has some of the most complex 00:19:26.019 --> 00:19:28.859 labor law structures in the world. They have 00:19:28.859 --> 00:19:31.400 these detailed awards that dictate pay rates 00:19:31.400 --> 00:19:34.019 based on specific hours and roles and conditions. 00:19:34.279 --> 00:19:36.640 So acquiring Ritech gave Dayforce an immediate 00:19:36.640 --> 00:19:38.819 proven solution for that highly complex market. 00:19:38.960 --> 00:19:41.180 It was a crucial foothold in the APAC region. 00:19:41.339 --> 00:19:43.599 A very important one. And it quickly ramped up 00:19:43.599 --> 00:19:46.059 that regional focus. The next year, in 2020, 00:19:46.279 --> 00:19:48.559 they acquired Accelity Global Solutions, which 00:19:48.559 --> 00:19:51.720 was an Asian HCM provider. So this move broadened 00:19:51.720 --> 00:19:53.740 their reach beyond just the developed markets 00:19:53.740 --> 00:19:56.240 of Australia and New Zealand. Significantly. 00:19:56.279 --> 00:19:59.259 Asia is an incredibly fragmented compliance environment. 00:19:59.539 --> 00:20:02.420 I mean, tax laws and labor rules shift rapidly 00:20:02.420 --> 00:20:04.980 from country to country, often with no central 00:20:04.980 --> 00:20:07.980 database to track it all. Excelity gave them 00:20:07.980 --> 00:20:10.359 the depth and regulatory expertise to operate 00:20:10.359 --> 00:20:12.920 across those complex, diverse Asian markets. 00:20:13.390 --> 00:20:15.730 And the APAC consolidation didn't stop there. 00:20:15.869 --> 00:20:19.329 It continued aggressively into 2021 with the 00:20:19.329 --> 00:20:21.950 acquisition of Ascender HCM. Right. And when 00:20:21.950 --> 00:20:24.930 you see three strategic acquisitions in one core 00:20:24.930 --> 00:20:29.289 geographic region, 2019, 2020, 2021, in such 00:20:29.289 --> 00:20:31.730 rapid succession, it tells you something. It 00:20:31.730 --> 00:20:33.769 tells you that market saturation and platform 00:20:33.769 --> 00:20:36.950 unification in Asia Pacific was the number one 00:20:36.950 --> 00:20:39.289 organizational priority. They were trying to 00:20:39.289 --> 00:20:41.930 build a single comprehensive regional product. 00:20:42.670 --> 00:20:45.170 buy out all the necessary specialized compliance 00:20:45.170 --> 00:20:47.109 libraries they would need to do it. But their 00:20:47.109 --> 00:20:50.069 M &A map wasn't just limited to Asia. They simultaneously 00:20:50.069 --> 00:20:52.250 made a major move into a completely different 00:20:52.250 --> 00:20:55.289 part of the world in December 2021 by acquiring 00:20:55.289 --> 00:20:57.910 Adam Human Capital Management. And this acquisition, 00:20:58.029 --> 00:20:59.950 which focused on Latin America and the Caribbean, 00:21:00.170 --> 00:21:02.490 is arguably the crown jewel of their compliance 00:21:02.490 --> 00:21:05.549 IP library. Why is that? Because Adam was a leading 00:21:05.549 --> 00:21:08.869 provider of payroll and HCM services, covering 00:21:08.869 --> 00:21:11.970 an astonishing 33 countries across Latin America. 00:21:11.880 --> 00:21:15.380 America, Brazil and the Caribbean. 33 countries, 00:21:15.539 --> 00:21:18.740 each one with unique payroll, tax and labor laws, 00:21:18.920 --> 00:21:21.460 all requiring constant legislative monitoring. 00:21:21.900 --> 00:21:25.039 I mean, integrating that level of specific local 00:21:25.039 --> 00:21:27.839 compliance expertise into a single cloud application 00:21:27.839 --> 00:21:30.319 is exactly the kind of intellectual property 00:21:30.319 --> 00:21:35.000 a PE firm values at $12 .3 billion. It is a massive, 00:21:35.019 --> 00:21:37.240 expensive barrier to entry for any competitor. 00:21:37.440 --> 00:21:39.380 Of course. And that's the ultimate value proposition 00:21:39.380 --> 00:21:42.319 to a global corporate client. It's you only have 00:21:42.319 --> 00:21:44.500 to deal with day force and we will manage the 00:21:44.500 --> 00:21:47.480 messy reality of 33 different jurisdictions and 00:21:47.480 --> 00:21:49.420 we'll give you unified reporting and centralized 00:21:49.420 --> 00:21:51.950 data. It moves Dayforce from just being a software 00:21:51.950 --> 00:21:54.490 vendor to being a de facto compliance partner 00:21:54.490 --> 00:21:56.450 for global operations. That's the transition. 00:21:56.670 --> 00:21:58.410 And the final major acquisition noted in our 00:21:58.410 --> 00:22:01.490 sources in January 2024 shows a slightly different 00:22:01.490 --> 00:22:03.609 strategic focus. It's a shift from geographic 00:22:03.609 --> 00:22:05.589 expansion to more of a vertical enhancement. 00:22:05.930 --> 00:22:08.190 They acquired a Denmark -based company called 00:22:08.190 --> 00:22:10.920 Illumi. Right. Iluumi was a highly strategic 00:22:10.920 --> 00:22:13.019 add -on. It wasn't just focused on compliance, 00:22:13.180 --> 00:22:15.559 but on the talent side of HCM Learning and Development, 00:22:15.700 --> 00:22:18.940 or L &D. So training, performance reviews, things 00:22:18.940 --> 00:22:21.140 like that. Exactly. It combined a learning management 00:22:21.140 --> 00:22:23.940 system, an LMS, and performance management into 00:22:23.940 --> 00:22:27.420 one integrated solution. So once they had secured 00:22:27.420 --> 00:22:30.339 the geographic coverage in APAC in Latin America, 00:22:30.599 --> 00:22:32.779 they started buying these highly specialized 00:22:32.779 --> 00:22:35.799 features to differentiate the platform even further. 00:22:36.039 --> 00:22:38.880 And L &D, performance tracking. Those are essential 00:22:38.880 --> 00:22:41.539 for talent retention, which is a critical concern 00:22:41.539 --> 00:22:44.660 for any CEO in the modern era. It shows a real 00:22:44.660 --> 00:22:47.039 maturity in their M &A strategy. You know, phase 00:22:47.039 --> 00:22:50.039 one, by the geography and the necessary compliance. 00:22:50.259 --> 00:22:53.160 Phase two, by the functionality that makes the 00:22:53.160 --> 00:22:55.740 platform stickier and harder to replace, covering 00:22:55.740 --> 00:22:57.740 crucial areas like employee growth and development. 00:22:58.039 --> 00:22:59.980 This comprehensive approach really confirmed 00:22:59.980 --> 00:23:02.799 their goal. to become a truly integrated global 00:23:02.799 --> 00:23:06.539 people platform. And that strategic roadmap from 00:23:06.539 --> 00:23:10.519 the focus 2018 IPO to rapid global M &A and nearly 00:23:10.519 --> 00:23:13.640 $1 .8 billion in revenue, it leads us perfectly 00:23:13.640 --> 00:23:16.440 into the final act. The identity shift and the 00:23:16.440 --> 00:23:20.200 massive sale, the culmination of the entire transformation. 00:23:20.240 --> 00:23:22.799 So after years of building the Dayforce platform, 00:23:23.119 --> 00:23:26.099 the final strategic act was to unify the corporate 00:23:26.099 --> 00:23:28.589 identity. with a successful product identity. 00:23:28.829 --> 00:23:30.869 They needed to shed all that historical baggage. 00:23:31.150 --> 00:23:33.049 Exactly. And we see that in the high profile 00:23:33.049 --> 00:23:35.769 rebranding that took place on February 1st, 2024. 00:23:36.230 --> 00:23:39.349 Ceridian officially transitioned the company's 00:23:39.349 --> 00:23:41.890 brand to Dayforce. And this rebranding is so 00:23:41.890 --> 00:23:43.950 much more than just marketing, isn't it? It's 00:23:43.950 --> 00:23:46.329 a profound, symbolic and strategic commitment. 00:23:46.529 --> 00:23:48.769 It really is. They officially retired the Ceridian 00:23:48.769 --> 00:23:51.450 name, which carried all of that complex legacy 00:23:51.450 --> 00:23:55.130 from the CDC mainframe roots, the Arbitron split, 00:23:55.329 --> 00:23:58.240 the Comdata separation. By adopting the Dayforce 00:23:58.240 --> 00:24:00.220 name, they focused their entire brand equity 00:24:00.220 --> 00:24:02.599 on the one thing that had driven all their growth 00:24:02.599 --> 00:24:06.180 since 2012, the successful cloud platform. And 00:24:06.180 --> 00:24:08.599 the public markets followed suit. The stock ticker 00:24:08.599 --> 00:24:11.200 symbols on both the NYSE and the TSX changed 00:24:11.200 --> 00:24:14.279 from the old CDA to the simple product -focused 00:24:14.279 --> 00:24:17.220 symbol Day. Which solidified their market positioning. 00:24:17.460 --> 00:24:19.680 They were no longer an HR services company that 00:24:19.680 --> 00:24:21.779 has a cloud product. They were the cloud product. 00:24:21.920 --> 00:24:24.769 And this unified identity made them simpler to 00:24:24.769 --> 00:24:27.710 understand, simpler to value, and ultimately 00:24:27.710 --> 00:24:30.829 far more attractive to a tech -focused private 00:24:30.829 --> 00:24:33.430 equity investor like Tama Bravo. Which brings 00:24:33.430 --> 00:24:35.910 us right back to the climax of the story, the 00:24:35.910 --> 00:24:39.089 $12 .3 billion conclusion announced in August 00:24:39.089 --> 00:24:42.430 2025. This is the ultimate validation, isn't 00:24:42.430 --> 00:24:45.069 it, for the strategy executed by David Ossip 00:24:45.069 --> 00:24:47.619 and his team over the previous 12 years. Without 00:24:47.619 --> 00:24:50.980 a doubt. Tama Bravo, a firm specializing in software 00:24:50.980 --> 00:24:53.539 buyouts and known for executing that flip the 00:24:53.539 --> 00:24:55.539 switch strategy we talked about where they cut 00:24:55.539 --> 00:24:57.839 heavy growth investment to maximize profitability. 00:24:58.960 --> 00:25:01.880 They agreed to acquire Dayforce for that massive 00:25:01.880 --> 00:25:04.279 sum. It's just essential to reflect on the full 00:25:04.279 --> 00:25:05.920 timeline. Now that we have the whole picture, 00:25:06.059 --> 00:25:08.079 you have a company that's the descendant of Control 00:25:08.079 --> 00:25:11.680 Data Corporation from 1957. It goes private in 00:25:11.680 --> 00:25:14.920 2007 for $5 .3 billion. Which was the necessary 00:25:14.920 --> 00:25:17.640 step to clean house and acquire the differentiating 00:25:17.640 --> 00:25:19.759 sauce technology. Then they relaunched publicly 00:25:19.759 --> 00:25:22.279 after that cleanup to expand globally. And less 00:25:22.279 --> 00:25:24.099 than two decades later, they're purchased again, 00:25:24.279 --> 00:25:27.319 going private for $12 .3 billion. That is just 00:25:27.319 --> 00:25:29.880 immense value. creation within the dedicated 00:25:29.880 --> 00:25:33.980 HCM SA sector. It demonstrates not only the resilience 00:25:33.980 --> 00:25:36.640 of the corporate structure, but also the astronomical 00:25:36.640 --> 00:25:39.200 increase in the value placed on these scalable, 00:25:39.339 --> 00:25:42.759 integrated software solutions that promise to 00:25:42.759 --> 00:25:45.440 simplify the messy reality of global compliance. 00:25:45.740 --> 00:25:47.799 And as we noted earlier, that partnership with 00:25:47.799 --> 00:25:50.180 the Abu Dhabi Investment Authority just reinforces 00:25:50.180 --> 00:25:52.829 that the value here is perceived stability. They 00:25:52.829 --> 00:25:55.710 are buying recurring revenue streams from a platform 00:25:55.710 --> 00:25:58.089 that is now critical infrastructure for thousands 00:25:58.089 --> 00:26:01.309 of global businesses. It's a very smart, long 00:26:01.309 --> 00:26:03.769 -term asset acquisition. They're buying stability, 00:26:04.009 --> 00:26:07.130 efficiency, and most importantly, a massive library 00:26:07.130 --> 00:26:10.369 of digitized, constantly updated global tax and 00:26:10.369 --> 00:26:13.009 labor law compliance rules, all packaged in a 00:26:13.009 --> 00:26:15.599 single application. And that compliance IP, that 00:26:15.599 --> 00:26:18.140 intellectual property, is the core barrier to 00:26:18.140 --> 00:26:20.619 entry. That is the ultimate source of that $12 00:26:20.619 --> 00:26:23.740 .3 billion valuation. So let's bring it all together. 00:26:23.960 --> 00:26:26.119 What does this all mean for someone trying to 00:26:26.119 --> 00:26:28.000 learn from this? Let's summarize the complex 00:26:28.000 --> 00:26:30.720 layers of transformation that created this tech 00:26:30.720 --> 00:26:33.539 giant. Well, I think the story is a superb illustration 00:26:33.539 --> 00:26:36.700 of the power of strategic focus. You know, the 00:26:36.700 --> 00:26:39.619 company's origins in 1957 computing and that 00:26:39.619 --> 00:26:43.440 1992 recognition that information services would... 00:26:43.440 --> 00:26:45.880 beat physical hardware that laid the groundwork. 00:26:46.019 --> 00:26:48.380 But the real lesson is the ruthless self -purification 00:26:48.380 --> 00:26:50.420 that came after that. That's right. The critical 00:26:50.420 --> 00:26:53.380 phase was definitely those middle years under 00:26:53.380 --> 00:26:55.980 private ownership, the multiple corporate splits, 00:26:56.099 --> 00:26:58.160 the absolutely essential day force product acquisition 00:26:58.160 --> 00:27:01.099 in 2012, and then the final separation of payments 00:27:01.099 --> 00:27:04.079 in HCM in 2013 to get that pure play valuation 00:27:04.079 --> 00:27:07.680 status. Without that intense focused restructuring, 00:27:07.779 --> 00:27:10.039 the company never achieves the scale necessary 00:27:10.039 --> 00:27:13.789 for a $12 .3 billion exit. And we have to reiterate 00:27:13.789 --> 00:27:16.230 the crucial role of sustained leadership. David 00:27:16.230 --> 00:27:18.670 Ossip provided that essential consistency, staying 00:27:18.670 --> 00:27:21.049 on a CEO through the transition from Ceridian 00:27:21.049 --> 00:27:23.950 HCM through the aggressive M &A spree and through 00:27:23.950 --> 00:27:26.150 the ultimate unification under the Dayforce brand. 00:27:26.490 --> 00:27:29.230 And that strategy, post -IPO, was built entirely 00:27:29.230 --> 00:27:32.210 around global conquest, buying up local expertise 00:27:32.210 --> 00:27:35.609 in Australia, Asia, Latin America, Europe. But 00:27:35.609 --> 00:27:37.890 let's close on that truly provocative thought 00:27:37.890 --> 00:27:40.130 that we pulled from the source material about 00:27:40.130 --> 00:27:43.200 the future of a platform like this. Right. Dayforce's 00:27:43.200 --> 00:27:46.339 phenomenal success in its mass evaluation came 00:27:46.339 --> 00:27:48.799 from its aggressive focus on consolidating this 00:27:48.799 --> 00:27:52.059 highly fragmented global HR software market. 00:27:52.259 --> 00:27:55.019 They acquired local specialists to build what 00:27:55.019 --> 00:27:57.539 they hope is a single, comprehensive product. 00:27:57.940 --> 00:27:59.599 And the sources, for instance, mentioned the 00:27:59.599 --> 00:28:02.799 Adam HCM acquisition specifically covered payroll 00:28:02.799 --> 00:28:05.440 and services across 33 countries in Latin America, 00:28:05.599 --> 00:28:08.420 Brazil, and the Caribbean. That's an astonishing 00:28:08.420 --> 00:28:11.029 amount of varied regulatory complexity. And this 00:28:11.029 --> 00:28:13.009 raises the biggest question of all for the future 00:28:13.009 --> 00:28:15.950 of global business software. It's the wager that 00:28:15.950 --> 00:28:19.509 Tama Bravo and ADI just made with $12 .3 billion. 00:28:20.170 --> 00:28:23.170 And that is? Can a unified, single -application 00:28:23.170 --> 00:28:25.710 SaaS platform ever truly standardize and perfectly 00:28:25.710 --> 00:28:28.109 manage the massively complex and varied compliance 00:28:28.109 --> 00:28:31.450 requirements of 33 or 40 or 50 different countries 00:28:31.450 --> 00:28:34.710 into one neat, seamless package? Or is the true 00:28:34.710 --> 00:28:37.009 value just in the promise of simplification? 00:28:37.529 --> 00:28:40.289 that single source of truth, even if the underlying 00:28:40.289 --> 00:28:43.089 regulatory reality remains chaotic. I mean, the 00:28:43.089 --> 00:28:45.710 $12 .3 billion valuation suggests that the market 00:28:45.710 --> 00:28:47.849 believes the compliance IP developed and acquired 00:28:47.849 --> 00:28:51.170 by Dayforce is a sustainable, highly defensible 00:28:51.170 --> 00:28:53.619 moat against any competitor. It's a fascinating 00:28:53.619 --> 00:28:56.319 narrative of corporate survival, strategic betting, 00:28:56.519 --> 00:28:59.319 and the immense value we now place on technological 00:28:59.319 --> 00:29:02.400 solutions that promise to simplify global administrative 00:29:02.400 --> 00:29:05.839 chaos. From mainframes to the cloud, Dayforce 00:29:05.839 --> 00:29:08.559 has shown how corporate identity can, and often 00:29:08.559 --> 00:29:11.319 must, evolve to align with its greatest source 00:29:11.319 --> 00:29:14.240 of customer value. An incredibly complex journey 00:29:14.240 --> 00:29:16.660 distilled down to the essential lessons in business 00:29:16.660 --> 00:29:20.000 strategy and value creation. A fantastic deep 00:29:20.000 --> 00:29:22.200 dive into the evolution of Dayforce. My pleasure. 00:29:22.319 --> 00:29:24.099 And thank you for joining us on the Deep Dive. 00:29:24.119 --> 00:29:24.779 We'll see you next time.