Zuora to be acquired by Silver Lake, GIC for $10.00 per share in cash

Zuora announced that it has entered into a definitive agreement to be acquired by Silver Lake in partnership with an affiliate of GIC, in a transaction valued at $1.7B. Upon completion of the transaction, Zuora will become a privately held company. Under the terms of the agreement, Silver Lake and GIC will acquire all outstanding shares of Zuora common stock for $10.00 per share in cash. The purchase price represents an 18% premium to the company’s unaffected closing stock price and a 20% enterprise value premium. The agreement was unanimously approved and recommended to the Zuora board of directors by a special committee consisting of independent directors of the board, Jason Pressman, John Harkey, Laura Clayton McDonnell and Tim Haley. Following the special committee’s recommendation, the agreement has been unanimously approved and recommended for approval by stockholders by the Zuora board. The transaction is expected to close in the first calendar quarter of 2025, subject to customary closing conditions and approvals, including the receipt of required regulatory approvals; approval by a majority of the voting power of the outstanding capital of Zuora held by unaffiliated holders; and approval of a majority of the Company’s Class A common stock and a majority of the Company’s Class B common stock, each voting as separate classes. The transaction is not subject to a financing condition. Tien Tzuo, Zuora’s Founder, CEO and Chairman of the Board, will roll over a majority of his existing ownership. As a continuing investor in Zuora, Tzuo will remain focused on ensuring that Zuora is best positioned for long-term success. Upon completion of the transaction, Zuora’s common stock will no longer be listed on any public stock exchange. Tzuo will continue to lead the company, which will maintain its headquarters in Redwood City.