Highlights:

  • Zuora was established in 2007 and provides cloud-based software to assist companies in managing and streamlining their subscription billing procedures.
  • Zuora projects adjusted profits per share for its entire fiscal year of 56 to 58 cents on revenue of USD 455.5 million to USD 461.5 million.

Silver Lake and GIC Pte. Ltd. plan to acquire Zuora Inc., a cloud subscription service business, in a deal worth USD 1.7 billion. Silver Lake is a private-equity firm and GIC is an affiliate of Singapore’s sovereign wealth fund.

All outstanding shares of Zuora stock will be purchased by Silver Lake and GIC for USD ten in cash per share under the terms of the deal. In comparison, Zuora shares were trading at a premium of USD 9.42 before the announcement, although they had dropped as low as USD 8.36 during the previous month. Officially, Zuora’s last stock price was at an 18% premium over the acquisition price.

The board of Zuora has authorized the transaction, and shareholder approval is still pending.

Zuora was established in 2007 and provides cloud-based software to assist companies in managing and streamlining their subscription billing procedures. To provide recurring revenue streams, the company specializes in assisting businesses in making the switch from conventional product-based models to subscription-based services.

Support for billing, revenue recognition, payment collection, and analytics are all provided by the Zuora platform. The company also helps organizations effectively manage their customer retention and subscription growth initiatives by providing a unified view of client lifecycles.

With adaptable pricing structures designed to meet various needs, the company provides services to a wide range of industries, including media, software, healthcare, and education.

“Since our founding, Zuora has evangelized the shift to the Subscription Economy and evolution to complex revenue models, providing technology necessary to monetize products and services,” Tien Tzuo, Founder, Chairman and Chief Executive of Zuora stated. “As a private company, with the support and expertise of Silver Lake and GIC, our monetization suite will continue to lead in the marketplace.”

Following the takeover, Tzuo will stay in charge of the business.

With revenue of USD 115.4 million, up seven percent year over year, Zuora reported adjusted earnings per share of 19 cents as of the most recent reported quarter, its fiscal 2025 second quarter, up from seven cents in the same quarter of fiscal 2024. The quarter’s USD 104.1 million in subscription revenue increased nine percent year over year due to a rise in customers and expenditure. Zuora concluded the quarter with annual recurring revenue of USD 412.3 million, an increase from USD 384.2 million in the previous year.

Zuora projects adjusted profits per share for its entire fiscal year of 56 to 58 cents on revenue of USD 455.5 million to USD 461.5 million.

It is anticipated that the acquisition would conclude in the first quarter of 2025, pending usual clearances and closing conditions.