Subscription management software leader Zuora has agreed to a $1.7 billion acquisition by private equity firms, marking another massive consolidation in the enterprise tech sector as the subscription economy continues to scale.
Strategic Value in the Subscription Economy
“Zuora’s best-in-class software powers the revenue engines for many of the largest and most exciting companies today,” said Choo Yong Cheen, chief investment officer of private equity at GIC, and Eric Wilmes, head of private equity, Americas at GIC, said in a joint statement. “With rapid growth in the subscription economy, company requirements are becoming increasingly complex. Having established the category, Zuora’s products and experience position it for continued market leadership.”
A Wave of Take-Private Deals
Zuora’s acquisition comes on the heels of another major take-private PE deal. This morning, Permira completed its acquisition of Squarespace after upping its bid to $7.2 billion.
Private Equity Capital Deployment Reaches New Heights
PE mega-deals have surged this year, on track to challenge the 22-year record set in 2021. In Q2, PE firms announced 122 deals worth $196 billion, making it the strongest period for PE capital deployment since the downturn began in Q3 2022, according to EY.
