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

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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 the acquisition?

Zuora already offers Zuora Billing, Zuora Revenue and Zuora Collect. After the transaction is complete, Zephr’s employees will transition to Zuora, who will add Zephr to their product lineup.

James Henderson, the Chief Executive Officer of Zephr, stated that their focus has been on providing their customers with the flexibility they need to provide the experiences modern consumers expect. This begins with their first digital interaction, conversion, renewal and more. Henderson added that it was an easy decision to partner with Zuora to further accelerate the platform’s intended direction and enable all of Zephr’s customers to grow and profit from their subscriber base.

Tien Tzuo is the CEO and founder of Zuora; he said “the winners in the media industry are those who continuously innovate with new services, bundles, and offers.” Additionally, he stated that “what the media industry does will be adopted by other industries.” Because of this, Tzuo was excited to welcome Zephr into Zuora, which is a combination of both companies.

In the subscription economy, it’s essential for businesses to quickly create and test new digital services.

Subscription management platform

The Subscribed Institute — a branch of Zuora — stated that businesses in the same industry that grow at different rates iterate their pricing and packages twice as often.

Companies often don’t adjust to changing subscriber needs because their systems are outdated and inflexible.

Zephr allows businesses to meet constantly changing demands, which will encourage conversion, retention and growth of subscribers.

James Henderson and Chris Scott launched Zephr in 2018. This company created a personalized subscription product that publishers can monetize their digital users with. Zephr’s technology tracks each user’s online activity and uses a dynamic paywall to analyze it.

The company claims to provide tailored experiences for each of its subscribers via a decision engine. They also claim to power approximately 8 billion requests per month through identity management, intelligent trials, dynamic paywalls and entitlements management.

The California-based company Zuora offers subscription-based cloud software to anyone in any industry. This software allows businesses to launch, manage and grow subscriptions. Zuora is located in Redwood City.

US company Box serves over 1,000 businesses globally, including Penske Media Corporation, Schneider Electric, Siemens, Xplornet and Zoom.


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