Zuora enhances monetization suite with acquisition of Togai

In a strategic move to strengthen its position in the modern business monetization landscape, Zuora, Inc. (NYSE: ZUO) has announced its planned acquisition of Togai, a leading provider of metering and rating solutions. This acquisition is set to enhance Zuora’s suite of usage-based offerings, adding significant functionality with Togai’s low-code builder and developer-friendly interface. The deal, expected to close in early May 2024, will integrate Togai’s technologies into Zuora’s existing product lineup, promising to transform how developers and finance teams collaborate on usage-based business models.

The incorporation of Togai’s solutions is timely, as the rise of generative AI (GenAI) technologies has spurred an increased demand for usage-based business models. Togai’s capabilities will allow Zuora to offer a more robust platform that simplifies the configuration of metering and rating of raw events. This is crucial in an era where companies face complexities and high costs in monetizing their services, with developers and finance teams often struggling to manage and leverage product usage data effectively.

Zuora’s CEO, Tien Tzuo, emphasized the strategic importance of the acquisition: “Together, we will be strategically positioned to provide the right solutions for developers and finance teams to power the next generation of monetization.” Togai’s sophisticated metering and rating system will be a core component of Zuora’s expanded offerings, enabling precise and flexible pricing models while reducing customer disputes through fully auditable and traceable usage data.

The collaboration between the technical and financial aspects of business operations through Togai’s systems represents a significant shift towards more integrated and efficient monetization strategies. Togai’s technology facilitates the ingestion of events from various sources and supports a flexible rating engine that allows for unique packaging and bundling of offerings.

Foros is serving as the financial advisor, and Freshfields Bruckhaus Deringer US LLP as the legal advisor to Zuora. On the Togai side, QED Corporate Advisors and Argus Partners are handling financial and legal advisories, respectively.