Zuora to acquire Zephr for $44m

Subscription software giant Zuora is acquiring Zephr for US$44m. The latter, which is used by FIPP along with a number of leading global media organisations, provides a turnkey solution for subscriptions management that – as an existing partner of Zuora – will slot immediately into the company’s existing product suite. 

Zuora’s leading cloud-based subscription platform currently serves 1,000+ businesses across all industry sectors, including the likes of Box, Ford, Schneider Electric, Siemens, and Zoom. 

Commenting on the deal, Zuora Founder & CEO, Tien Tzuo – who we spoke to last year at the D2C Summit – said: “The winners in the media industry are those continuously innovating around new services, bundles, and offers. And where the media industry goes, other industries will follow. This is what combining Zuora and Zephr is about. We’re thrilled to welcome our fellow ZEOs into the family.”

First set up in 2018 by James Henderson and Chris Scott, Zephr launched as a subscription experience platform focused on accelerating revenue growth, with customers including News Corp, McClatchy, and Bauer. When the deal goes through (expected early September), it will join a host of other platforms already in Zuora’s product range, such as Zuora Billing, Zuora Revenue, and Zuora Collect. 

“Our focus has been on giving our customers the agility they need to deliver the experiences that modern customers expect,” said James Henderson, CEO at Zephr. “This starts from the first digital interaction, to conversion, to renewal. It was a clear decision to join Zuora to accelerate where our platform is headed, and empower all of our customers to nurture and monetize their subscriber relationships.”

In an email directly to customers, he added: 

“There will be no changes to the product, or the team that you are already working with. We remain as committed as ever to our vision, and to delivering you a product which allows you to give the best experiences to your consumers. All our existing contracts and services will remain in place without changes, and you will continue to receive the full support of your account team.”

Zuora expects the acquisition to contribute approximately $5 million to the company’s annual recurring revenue (ARR) and for its fiscal year ending January 31st 2023, add approximately $2 million of subscription revenue. You can find further information via the full press release here


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