Cloud subscription service provider Zuora announced the $44 million acquisition of Zephr, a subscription paywall software startup.
Zephr was founded in 2017 and provides a platform that helps media firms increase subscription income. According to the company, its identification, access control and customer experience platform enables rapid and large-scale implementations of trials, sales and upselling.
The company’s infrastructure processes tens of billions of dollars in transactions per quarter and drives roughly eight billion queries per month. Customers of Zephr include Bloomberg, DAZN Group, Guardian News & Media and Penske Media.
Zuora wants to acquire Zephr. According to Zuora, the subscription paywall platform will give enterprises the agility they need to rapidly establish and experiment with new digital services. Zuora wants to develop a joint service with Zephr that prevents customers from being weighed down by obsolete systems that limit their capacity to adapt to evolving subscriber needs.
Pending clearance, deal concludes next month
According to Zephr CEO James Henderson, it was an obvious decision to join Zuora. The company wants to expedite the platform’s direction and allow all its clients to cultivate and monetize their subscriber relationships.
According to Crunchbase, Zephr raised $11.1 million in venture capital investment before its sale. Knight Capital, Silicon Valley Bank, Nauta Capital, and BDMI are among the investors.
The transaction, which includes a $6 million earnout on top of the $44 million base cost, is slated to close in September, pending customary clearances and closing conditions.