Key Takeaways
- Shares of enterprise software company Zuora rose Thursday after announcing its purchase by a tech-focused private equity firm.
- The company said it would sell to Silver Lake and a partner for $10 per share in cash.
- The stock quickly rose to right around the offer price.
Shares of Zuora (ZUO) rose Thursday after the company announced a private equity firm would purchase it.
Zuora, an enterprise software company that went public in 2018, said it would sell to Silver Lake, a tech-focused private equity firm, for $10 per share in cash, a 6% premium to Wednesday’s close, valuing it at $1.7 billion. The stock was recently up nearly 6% to right around the deal price.
The deal is expected to close in the first quarter of 2025. Zuora, which had undertaken a review of strategic options, said the bid from Silver Lake and GIC, a Singaporean sovereign wealth fund, was the only “final, fully-financed proposal received.”
Zuora’s shares are up about 6% this year, rising for most of October.
The deal is the latest for Silver Lake, which earlier this year announced plans to buy sports media company Endeavor (EDR) and in summer 2023 closed on the purchase of Qualtrics.