Silver Lake, GIC to Take Zuora Private in $1.7B All-Cash Deal
Zuora, a company that sells software to help organizations manage their subscription-based services, has agreed to be purchased by private equity firms GIC Pte. Ltd., Singapore’s sovereign wealth fund, and Silver Lake for $1.7 billion in an all-cash transaction.
Silver Lake and GIC will acquire all outstanding shares of the Redwood City, CA-based company for $10 per share, an 18% premium to the company’s unaffected closing stock price and a 20% enterprise value premium. The deal is expected to close in the first quarter of 2025.
The Zuora Board of Directors, on the recommendation of a Special Committee of independent directors, has unanimously approved the agreement and recommended stockholder approval.
Tien Tzuo, Zuora’s founder, CEO and chairman of the board, will roll over most of his existing ownership. He will continue to lead the company.
“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,” said Tzuo.
Zuora offers a suite of software solutions for businesses to manage and grow their revenue through dynamic pricing, billing, and subscription models. The company serves over 1,000 customers globally, including prominent names like Caterpillar and General Motors.