Zuora, Inc. (NYSE: ZUO), a leading provider of monetization solutions for businesses with recurring revenue models, announced today that it has entered into a definitive agreement to be acquired by Silver Lake and GIC. The deal, valued at $1.7 billion, will result in Zuora becoming a privately held company, with stockholders receiving $10.00 per share in cash, representing an 18% premium over Zuora’s recent stock price.

The transaction, which has been unanimously approved by Zuora’s Board of Directors, follows a comprehensive review by an independent Special Committee, tasked with evaluating strategic alternatives. According to Jason Pressman, Chair of the Special Committee, “We are pleased to have reached an agreement that will deliver significant, immediate, and certain value to Zuora’s stockholders.”

Zuora’s Founder, CEO, and Chairman, Tien Tzuo, emphasized that the acquisition marks a pivotal moment for the company, 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.”

Silver Lake, a prominent technology investment firm, partnered with GIC, Singapore’s sovereign wealth fund, in the acquisition. Joe Osnoss, Managing Partner at Silver Lake, highlighted the strategic importance of the deal: “This investment underscores our confidence in Zuora as the clear leader of monetization solutions for modern recurring revenue businesses.”

The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals and stockholder consent. Following the acquisition, Zuora’s stock will no longer be listed on public exchanges, and Tien Tzuo will remain at the helm of the company.

The deal is seen as a significant move in the Subscription Economy, as Zuora continues to provide monetization software to over 1,000 companies worldwide, including well-known brands like Caterpillar, General Motors, and The New York Times.

INSIDER TAKE

Zuora’s acquisition by Silver Lake and GIC underscores a broader trend, where technology companies that power recurring revenue models are increasingly seen as strategic assets for long-term growth. As a private company, Zuora can focus on innovation without the immediate pressures of public markets, which could unlock more agile product development and deeper customer solutions.

This move also signals potential consolidation within the sector, as subscription businesses face growing complexity in managing recurring revenue streams. With Silver Lake and GIC backing, Zuora is well-positioned to lead the charge in setting new standards for monetization, billing, and revenue management technologies.

For Zuora’s clients, this could mean enhanced platform capabilities and stronger integrations as the company continues to expand its offerings. The deal also raises questions about how other competitors in the subscription tech space will react as the demand for sophisticated monetization tools intensifies.