In a significant move within the tech industry, Silver Lake Management and Singapore’s GIC Pte have reached an agreement to acquire Zuora Inc., a leading software firm specializing in subscription-based billing, for a staggering $1.7 billion.
The deal will see the investment firms pay $10 per share in cash for Zuora, representing an 18% premium over the company’s closing price on April 16—the day before reports emerged that Zuora was exploring a potential sale.
Founded by CEO Tien Tzuo, Zuora has established itself as a crucial player in helping companies manage subscription billing processes. Tzuo plans to roll over a majority of his ownership in the firm, signaling his commitment to the company’s future.
Silver Lake, which has been invested in Zuora since 2022, initially injected $400 million as part of a strategic investment aimed at accelerating the company’s growth trajectory.
A robust team of advisors is guiding the transaction: Qatalyst Partners and Goodwin Procter LLP are advising Zuora’s special committee, while Foros and Freshfields are supporting the company itself. Silver Lake is represented by Simpson Thacher & Bartlett LLP, and GIC has enlisted Dechert LLP as legal counsel. Tzuo is being advised by Sullivan & Cromwell LLP.
This acquisition not only highlights the growing importance of subscription management solutions in today’s economy but also underscores the confidence that top investment firms have in Zuora’s potential for future growth. As the tech landscape continues to evolve, this deal positions Zuora for an exciting new chapter under its new ownership.
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