ZUO - Zuora to acquire subscription experience platform Zephr for $44M

• Zuora ( NYSE: ZUO ) said Wednesday it will acquire Zephr , a subscription experience platform used by global digital publishing and media companies, for $44M in cash.
• The deal also includes an earnout consideration of up to $6M, subject to achieving certain targets.
• ZUO expects the acquisition to contribute ~$5M to its annual recurring revenue.
• As an existing Zuora partner, Zephr's pre-integrated solution is in use by joint customers and will immediately expand ZUO's product suite.
• Zephr will become a part of ZUO's existing product suite, alongside Zuora Billing, Zuora Revenue, and Zuora Collect.
• For year 2023 ending January 31, 2023,
• ZUO projects the acquisition will add ~$2M of subscription revenue in 2023 and expects to absorb incremental operating expenses with no impact to adj. operating loss.
• The acquisition is expected to close in early Sept.
• ZUO also reported Q2 results that were largely in-line with estimates .

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