| Key Points: – Zuora will be acquired for $1.7 billion by Silver Lake and GIC. – Zuora stockholders will receive $10.00 per share in cash. – The acquisition will help Zuora continue its growth as a private company. |
Zuora, Inc., a leading monetization platform for modern businesses, has announced that it has entered into a definitive agreement to be acquired by global investment giant Silver Lake and GIC Pte. Ltd., in a transaction valued at $1.7 billion. Under the agreement, Silver Lake and GIC will purchase all of Zuora’s outstanding shares for $10.00 per share in cash. This purchase price represents an 18% premium to Zuora’s unaffected closing stock price.
This acquisition marks a major milestone in Zuora’s growth strategy, with the company becoming a privately held organization once the deal is finalized. As Zuora transitions away from being publicly listed, the company looks forward to leveraging the support and expertise of Silver Lake and GIC to strengthen its position as a leader in monetization solutions, enabling businesses to manage and grow recurring revenue models.
Tien Tzuo, Zuora’s Founder, CEO, and Chairman of the Board, expressed his enthusiasm for the deal, stating, “As a private company, with the support of Silver Lake and GIC, our monetization suite will continue to lead in the marketplace. We look forward to entering this next phase of growth alongside Silver Lake, GIC, and our team of ZEOs.”
The acquisition follows a thorough review process led by a special committee of independent directors, who explored strategic alternatives to maximize shareholder value. Ultimately, the Silver Lake and GIC proposal stood out as the best risk-adjusted offer, leading to the unanimous approval from the Zuora Board of Directors. According to Jason Pressman, Chair of the Special Committee, “We are pleased to have reached an agreement that delivers significant, immediate, and certain value to Zuora’s stockholders.”
Silver Lake and GIC expressed their confidence in Zuora’s leadership and market position. Joe Osnoss, Managing Partner at Silver Lake, and Mike Widmann, Managing Director at Silver Lake, praised Zuora’s ability to power monetization strategies for more than 1,000 customers worldwide. They believe the investment will further enhance Zuora’s growth and innovation in enabling subscription-based business models.
Zuora has established itself as a key player in the Subscription Economy, helping companies shift to more complex revenue models. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and shareholder approval. Upon completion, Zuora’s stock will no longer be publicly traded, and Tien Tzuo will continue to lead the company in its next phase as a private entity.