Zuora said it will be acquired by Silver Lake and GIC in a $1.7 billion deal that will take the company private.
Under the terms of the deal, Zuora shareholders will get $10 a share.
The company will continue to be led by founder and CEO Tien Tzuo, who added that going private will help the Zuora build out its monetization suite.
- Martin Schneider: Will going private help Zuora regain its innovation mojo?
- Constellation ShortList™ Smart Services Digital Monetization Platforms
According to Zuora, the deal is expected to close in the first quarter of 2025. Tzuo will roll over the majority of his existing ownership.
Zuora recently acquired Togai and said it would offer a platform for usage-based pricing as well as subscriptions. Generative AI has led to new models for businesses that previously relied solely on subscriptions.
Enterprise software is a hotbed for private equity as New Relic, Alteryx and Smartsheet have been among the companies going private.
- Smartsheet to go private in deal valued at $8.4 billion
- New Relic goes private in $6.5 billion deal, aims to accelerate observability platform ubiquity
- Alteryx goes private in $4.4 billion deal: What to watch next
