Zuora, a monetisation portfolio provider for modern business, has agreed to be acquired by technology investment firm Silver Lake in partnership with an affiliate of Singapore’s sovereign wealth fund GIC in a deal valued at $1.7bn.
According to the terms of the definitive agreement, Silver Lake and GIC will acquire all outstanding shares of Zuora’s common stock for $10 per share in cash. This consideration represents a premium of 18% over Zuora’s last unaffected closing stock price.
The deal was unanimously approved by Zuora’s board of directors.
Following the closing of the proposed deal, Zuora will transition from a publicly traded company to a privately held one. The billing software firm’s common stock will then no longer be listed on any public stock exchange.
Silver Lake managing partner Joe Osnoss and managing director Mike Widmann said: “This investment underscores our confidence in Zuora as the clear leader of monetisation solutions for modern recurring revenue businesses.
“Building upon our long-term partnership with GIC, we look forward to collectively supporting management as they continue to deliver solutions that enable their more than 1,000 customers to unlock and grow customer-centric business models.”
The transaction does not depend on financing conditions.
Zuora’s founder, CEO, and chairman, Tien Tzuo, will maintain a majority of his ownership stake in the company. He will continue to lead Zuora as its shifts to the next phase of growth as a private company.
Based in the US, Zuora offers a monetisation suite to develop, operate and grow a modern business through a dynamic mix of usage-based models, and subscription bundles.
Zuora’s flexible and modular software platform is designed to assist companies in adapting their monetisation strategies to meet customer demand, covering aspects such as pricing and packaging, billing, payments, and revenue accounting.
Tzuo said: “Since our founding, Zuora has evangelised the shift to the Subscription Economy and evolution to complex revenue models, providing technology necessary to monetise products and services.
“As a private company, with the support and expertise of Silver Lake and GIC, our monetisation suite will continue to lead in the marketplace.”
Subject to customary conditions and approvals, including the receipt of required regulatory approvals and shareholder approvals, the transaction is anticipated to be completed in Q1 2025.
For the transaction, Foros serves as financial adviser to Zuora while Freshfields US is the company’s legal counsel. Simpson Thacher & Bartlett is legal counsel to Silver Lake and Dechert is acting as legal counsel to GIC.
