Zuora goes private in $1.7bn Silver Lake and GIC acquisition, marking a new growth era

Subscription management firm Zuora, Inc. has officially transitioned to private ownership following the completion of its $1.7 billion acquisition by Silver Lake and GIC, a deal poised to reshape its trajectory in the subscription management industry.

The agreement, first announced in October 2024, saw Silver Lake, a global leader in technology investing, partnering with Singapore’s sovereign wealth fund, GIC, to acquire Zuora for $10.00 per share in cash. This valuation represents an 18% premium over the company’s last unaffected closing stock price. With this transaction, Zuora’s Class A common stock will no longer be traded on the New York Stock Exchange, marking a significant shift for the company as it embarks on a new phase of growth under private ownership.

What Does the Zuora Acquisition Mean for the Subscription Economy?

Zuora’s business model revolves around enabling companies to implement subscription revenue models, a critical component of the modern digital economy. Its enterprise monetization platform provides flexible billing, pricing, and revenue automation solutions, making it a go-to choice for businesses adopting recurring revenue models.

Founder, CEO, and Chairman Tien Tzuo emphasized that this acquisition would allow Zuora to accelerate its growth strategy and deepen its commitment to innovation. He noted that the partnership with Silver Lake and GIC would enhance the company’s ability to support enterprises shifting to hybrid pricing models, which blend traditional subscriptions with usage-based billing structures.

Zuora’s impact extends across a broad customer base, including industry giants such as Caterpillar, The New York Times, and Zoom. The company’s monetization software suite plays a crucial role in helping enterprises streamline billing, manage customer relationships, and maximize revenue. As a private entity, Zuora is expected to sharpen its focus on developing advanced tools to support businesses navigating the complexities of subscription-based business models.

Why Did Silver Lake and GIC Invest in Zuora?

Silver Lake, a firm renowned for backing high-growth technology companies, sees Zuora as a strategic asset in the evolving digital economy. Managing Partner Joe Osnoss and Managing Director Mike Widmann highlighted that Zuora’s solutions are increasingly critical for businesses transitioning to subscription revenue models. They expressed confidence in the company’s leadership and its ability to continue innovating under private ownership.

GIC’s investment signals strong belief in Zuora’s market potential as well. Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, and Eric Wilmes, Head of Private Equity, Americas, emphasized that GIC’s long-term vision aligns with Zuora’s expansion plans. They pointed out that enterprise monetization platforms are becoming essential as companies seek scalable, data-driven pricing strategies. By collaborating with Silver Lake and Zuora’s management, GIC aims to strengthen Zuora’s market leadership in recurring revenue models.

How Was the Acquisition Structured?

Zuora’s acquisition was the result of a detailed strategic review led by an independent committee of its board of directors. Jason Pressman and John D. Harkey, Jr., both members of the special committee, oversaw an extensive evaluation process involving more than 30 potential buyers. After narrowing down to 10 serious contenders, Silver Lake and GIC’s proposal was deemed the best option in terms of risk-adjusted value for shareholders.

Zuora’s stockholders voted in favor of the deal at a Special Meeting of Stockholders on February 13, 2025. Pressman described the transaction as offering “significant, immediate, and certain value,” underscoring the strong support for the acquisition. Harkey added that Silver Lake and GIC provided a well-financed proposal that aligned with Zuora’s long-term objectives.

What’s Next for Zuora as a Private Company?

As Zuora transitions into private ownership, its leadership is expected to focus on expanding its monetization software suite to meet evolving market demands. The company will likely invest in AI-driven automation, predictive analytics, and enhanced customer engagement tools to further refine its subscription revenue models.

Silver Lake’s track record of helping tech firms scale suggests that Zuora will benefit from deep industry expertise and strategic resources. Meanwhile, GIC’s involvement provides strong financial backing, allowing Zuora to pursue long-term innovation without the short-term pressures of public markets.

While Zuora’s exit from the stock exchange marks the end of its publicly traded era, it also signals the beginning of a new chapter—one where the company can focus entirely on enhancing its enterprise monetization platform and strengthening its foothold in the digital economy.