The acquisition will involve purchasing all outstanding shares of Zuora's common stock at $10.00 per share, reflecting an 18% premium over its previous closing stock price.

The transaction is expected to close in the first quarter of 2025, pending necessary approvals and customary closing conditions.

The deal comes amid a surge in private equity mega-deals in 2024, with significant capital deployment observed in the sector.

This acquisition marks another strategic move for Silver Lake, which has been actively expanding its portfolio with recent acquisitions.

Zuora, a subscription management software company, has agreed to be acquired by private equity firms Silver Lake and GIC in an all-cash deal valued at approximately $1.7 billion.

Prior to this acquisition announcement, Zuora had been reviewing strategic options and stated that this was the only final, fully-financed proposal received.

Earlier this year, Zuora announced plans to lay off approximately 8% of its workforce as part of a cost-cutting initiative.

Zuora's financial position is strong, holding more cash than debt, which makes it an attractive target for acquisition.

In its latest report, Zuora indicated a 9% year-over-year increase in subscription revenue, reaching $104 million in the second quarter of fiscal year 2025.

This acquisition aligns with a trend of private equity firms taking public tech companies private, similar to Squarespace's acquisition by Permira.

Following the acquisition, Tien Tzuo, Zuora's founder and CEO, will continue to lead the company, which will retain its headquarters in Redwood City.

The agreement has been unanimously approved by Zuora's Board of Directors after a thorough review by a Special Committee of independent directors.