- 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 .
For further details see:
Zuora to acquire subscription experience platform Zephr for $44M