Zuora to be Acquired by Silver Lake and GIC in an All-Cash Deal for $1.7 Billion

California-based Zuora, Inc. (ZUO) entered a merger agreement on October 17, 2024, to be acquired by investment firms Silver Lake and GIC, in a deal valued at $1.7 billion.

Deal Structure:

As per the agreement, Silver Lake in partnership with an affiliate of GIC will take the subscription management software maker private for $10.00 per share in cash, representing a 6.16% premium from the stock’s last close.

Company Profile:

Zuora is a software company that helps businesses manage subscription services by providing tools for billing, payments, and revenue tracking. Based in Redwood City, California, it supports over 1,000 clients, including companies like General Motors (GM) and The New York Times (NYT).

Silver Lake is a prominent global technology investment firm with over $104 billion in assets under management, specializing in investments in technology-driven companies across North America, Europe, and Asia.

GIC is a major global investment firm founded in 1981 to manage Singapore’s foreign reserves. It uses a long-term strategy to invest in different areas, including stocks, real estate, private equity, and infrastructure and operates in over 40 countries.

Deal Details and Timeline:

In April, reports of Zuora exploring strategic options, including sale, started making rounds. The stock was trading at $8.47 before Zuora receiving acquisition interest from potential suitors was reported by Reuters.

Zuora’s current Price/Sales (TTM) ratio is 3.07, above the sector median of 3.05.

Once the transaction is complete, which is expected in the first quarter of 2025, Zuora’s common stock will no longer be listed on any public stock exchange. However, Tien Tzuo–Zuora’s founder and CEO–will continue in the position, and the company will keep its headquarters in Redwood City.

Deal Metrics:

For comprehensive details related to this M&A transaction, please visit the Deal Metrics page at:

Deal Metrics for the acquisition of Zuora, Inc. (ZUO) by Silver Lake and GIC

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

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Editor’s Note: Baranjot Kaur contributed to this article