Billing software firm Zuora explores sale after takeover interest, sources say

Zuora

17/04/2024 18:23

By Milana Vinn
       NEW YORK, April 17 (Reuters) - Zuora, which makes
subscription management software for businesses, is exploring
options that include a sale after receiving acquisition interest
from potential suitors, according to people familiar with the
matter. 
    Redwood City, California-based Zuora  ZUO.N  has tapped
investment bank Qatalyst Partners to advise on discussions with
potential acquirers, which include private equity firms, the
sources said.
    Zuora's board has formed a special committee comprising
independent directors to handle the company's discussions on a
deal to allow for the possibility that its CEO and founder Tien
Tzuo and some other large shareholders may participate in the
transaction, one of the sources said. According to recent
company filings, Tzuo holds about 43% of Zuora's total voting
rights through a special class of shares.
    The sources cautioned that there is no certainty that any
deal will materialize and asked not to be identified because the
deliberations are confidential.
    Zuora's shares were trading at $8.98 on Wednesday, giving it
a market capitalization of about $1.3 billion. Zuora has lost
more than a third of its value since the company listed its
shares on the stock market, as it faced stiff competition from
larger players in the industry. 
    Zuora and Qatalyst did not immediately respond to requests
for comment. 
        
  

 (Reporting by Milana Vinn in New York; additional reporting by
David French; Editing by Lisa Shumaker)
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