(Reuters) - Billing software firm Zuora ( ZUO ) said on Thursday it has agreed to be acquired by buyout firm Silver Lake and Singaporean wealth fund GIC in a deal valued at $1.7 billion, sending its shares up nearly 6% in early trading.

Silver Lake and GIC will acquire all outstanding shares of Zuora's ( ZUO ) common stock at $10 apiece in cash, which represents a premium of 6.2% to its last close.

The offer price is an 18% premium to the closing price on April 16, the last trading day before Reuters first reported Zuora ( ZUO ) was exploring options after it had received acquisition interest from potential suitors.

Zuora ( ZUO ) will become a privately held company after the transaction is closed, which is expected in the first quarter of 2025, it said.

The company, founded in 2007, offers billing software and other subscription management tools to enterprise customers, which include cloud computing firm Nutanix and Siemens Healthineers.

Zuora ( ZUO ) founder and CEO Tien Tzuo will continue to lead the company, which will maintain its headquarters in Redwood City.

Qatalyst Partners is serving as financial adviser to the company's special committee consisting of independent directors of the board and Foros is serving as Zuora's ( ZUO ) financial adviser.

Zuora ( ZUO ) had said earlier this year it planned to lay off about 8% of its workforce as part of a broader company-wide cost-cutting drive.