12:33 PM EDT, 10/17/2024 (MT Newswires) -- Zuora ( ZUO ) said Thursday that it agreed to be acquired and taken private by investment firm Silver Lake in partnership with an affiliate of GIC in a deal valued at about $1.7 billion.

Shareholders of the subscription management software company will receive $10 per share in cash, reflecting an 18% premium to the company's closing stock price on April 16, the last day before media speculation surfaced about a potential sale. Zuora's ( ZUO ) shares increased 6.4% in midday trading.

The deal, which requires approvals from regulators and Zuora's ( ZUO ) stockholders, is expected to complete in the first quarter of 2025. The company will no longer trade publicly once the deal closes.

"Our agreement with Silver Lake and GIC represents the culmination of a comprehensive process to determine the best path to maximizing value for Zuora ( ZUO ) stockholders," Jason Pressman, lead independent director of Zuora's ( ZUO ) board, said in a statement. "We are pleased to have reached an agreement that will deliver significant, immediate and certain value to Zuora's ( ZUO ) stockholders."

Zuora Founder and Chief Executive Tien Tzuo agreed to roll over a majority of his existing ownership in the company. Tzuo will continue to lead the firm, which will maintain its headquarters in Redwood City, California.

In August, Zuora ( ZUO ) reported fiscal second-quarter adjusted earnings of $0.19 per share, up from $0.07 a year earlier, while revenue increased 7% to $115.4 million. At the time, the company said it expected fiscal 2025 adjusted EPS of $0.56 to $0.58 and revenue of $455.5 million to $461.5 million.

"We are thrilled to work alongside Zuora's ( ZUO ) impressive management team and our partner, Silver Lake, to support the business in its next phase of growth," GIC's chief investment officer of private equity, Choo Yong Cheen, and head of private equity for Americas, Eric Wilmes said.

"This investment underscores our confidence in Zuora ( ZUO ) as the clear leader of monetization solutions for modern recurring revenue businesses," according to Silver Lake's managing partner, Joe Osnoss, and managing director, Mike Widmann.

Price: 10.01, Change: +0.59, Percent Change: +6.26