Zuora to be Acquired for $1.7 Billion

By Bobby Samwell • Thursday, October 17 15:32 • Permanent Link

Zuora, Inc. has announced its definitive agreement to be acquired by Silver Lake and GIC for $1.7 billion, with Zuora stockholders to receive $10.00 per share in cash. The purchase price represents an 18% premium to the company’s unaffected closing stock price and a 20% enterprise value premium. Following the acquisition, Zuora will become a privately held company.

The transaction is expected to close in the first calendar quarter of 2025, subject to customary closing conditions and approvals. Tien Tzuo, Zuora’s founder, CEO, and chairman of the board, will roll over a majority of his existing ownership and continue to lead the company, which will maintain its headquarters in Redwood City.

Zuora’s leading monetization suite currently serves more than 1,000 customers worldwide, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric, and Zoom. The company's software powers the revenue engines for many large and exciting companies today, positioning it for continued market leadership.

The acquisition, which underscores confidence in Zuora as the clear leader of monetization solutions for modern recurring revenue businesses, is expected to enable the company to continue delivering solutions that unlock and grow customer-centric business models.

The transaction was unanimously approved by the Zuora board of directors and is not subject to a financing condition. Further details regarding terms and conditions contained in the definitive transaction agreements will be made available in Zuora’s current report on Form 8-K, which will be filed in connection with this transaction.

Qatalyst Partners is serving as the exclusive financial advisor to the special committee and provided a fairness opinion, while Foros is serving as the financial advisor to the company. Legal counsels involved include Goodwin Procter LLP, Freshfields US LLP, Simpson Thacher & Bartlett LLP, Dechert LLP, and Sullivan & Cromwell LLP.

Zuora, Inc. provides a leading monetization suite to build, run, and grow a modern business through a dynamic mix of usage-based models, subscription bundles, and everything in between. Its flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. As a result of these announcements, the company's shares have moved 5.8% on the market, and are now trading at a price of $9.96. For more information, read the company's full 8-K submission here.

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