Report: Zuora Considering Sale After Potential Acquirers Express Interest

Zuora is reportedly considering a sale and other options after more than one company expressed interest in acquiring it.

The subscription management software provider is working with an investment bank to conduct discussions with potential buyers, Reuters reported Wednesday (April 17), citing unnamed sources.

There is no certainty that a deal will be reached, according to the report.

Zuora did not immediately reply to PYMNTS’ request for comment.

The company’s board has formed a special committee of independent directors to handle its discussions on the deal in case its CEO and founder, Tien Tzuo — who holds about 43% of Zuora’s total voting rights — and other large shareholders participate in a transaction, the report said.

Zuora faces competition from larger players in the industry, has lost more than a third of its value since listing on the stock market, and said earlier this year that it planned to lay off about 8% of its workforce to cut costs, per the report.

The company’s stock rose 16% at one point Wednesday, giving it a market value of about $1.4 billion, Bloomberg reported Wednesday.

Zuora closed its public debut in 2018 with a value of about $2 billion.

Tzuo said at the time that “a bet on us is really a bet on an entire shift to a new business model, to a subscription economy.” He added that subscriptions are the “business model of the future.”

In November 2023, Zuora and Avalara expanded their partnership to provide a comprehensive eInvoicing solution, saying they aim to help companies meet the eInvoicing mandates and digital reporting requirements that countries around the world are adopting.

With this partnership, Zuora offers its customers access to Avalara E-Invoicing and Live Reporting, enabling businesses to set up global eInvoicing capabilities, connect to eInvoice exchange networks and government platforms, and support eInvoicing models specific to each country or region.

In October 2023, Zuora and Sovos, a global compliance technology solutions and services provider, partnered to help global businesses meet eInvoicing mandates.

Through that partnership, Zuora offers a pre-integrated, automated eInvoicing solution that works directly with its recurring billing. This gives Zuora customers an out-of-the-box solution to address local eInvoicing regulations.