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California-based Zuora acquires UK’s subscription platform Zephr for $44M

Photo Credit: Zephr

Zuora, a cloud-based subscription management platform provider with headquarters in California, declared that it has acquired Zephr, a subscription experience platform with headquarters in London.

According to the contract, Zuora will purchase Zephr for $44M in cash due at close and a potential $6M earnout. The US company anticipates that the acquisition will increase its annual recurring revenue by $5M.

What will happen after acquisition?

After the transaction is completed, Zephr will join Zuora’s current product lineup, which already includes Zuora Billing, Zuora Revenue, and Zuora Collect. The entire Zephr staff will transition to Zuora.

“Our focus has been on giving our customers the agility they need to deliver the experiences that modern customers expect – it starts from the first digital interaction, to conversion, to renewal,” said James Henderson, CEO at Zephr. “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.”

“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,” said Tien Tzuo, CEO and Founder of Zuora. “This is what combining Zuora and Zephr is about. We’re thrilled to welcome our fellow ZEOs into the family.”

Being quick to launch and experiment with new digital services is crucial for businesses operating in the subscription economy.

Subscription management platform

Zuora’s Subscribed Institute found that media companies with the fastest growth iterate their pricing and packaging twice as frequently as businesses in the same industry with slower growth.

However, most companies fail to adapt to changing subscriber expectations because of static, out-of-date systems.

Zephr will give businesses the adaptability they need to meet these constantly shifting demands, ultimately promoting subscriber conversion, retention, and growth.

Zephr, a company founded in 2018 by Chris Scott and James Henderson, has created a solution that enables publishers to monetize their digital users through subscription products that are personalised for each user. The technology tracks a user’s online activity and analyses it using a dynamic paywall.

With capabilities like identity management, intelligent trials, dynamic paywalls, entitlements management, and a decision engine that helps deliver experiences that are tailored to each subscriber, the company claims to power close to 8B requests each month.

Zuora, a California-based company, offers cloud-based software via subscription that enables any business in any industry to launch, manage, and evolve into a subscription business. Zuora is based in Redwood City.

More than 1,000 businesses, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom, are served by the US firm globally.

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