Zuora to buy Leeyo for revenue recognition software
Zuora, a provider of subscription commerce, billing and finance systems, has signed a deal to acquire Leeyo Software, which helps companies automate their transition to the new revenue recognition standards.
Financial details of the transaction, which is expected to close this quarter, were not disclosed. Zuora, based in San Mateo, Calif., has $250 million in funding from sources such as Benchmark Capital and BlackRock. It has 600 employees and 800 customers, including Ford, Caterpillar, GE, IBM and Box, according to a spokesperson.
Leeyo, based in San Jose, has 100 customers, 13 percent of whom are in the Fortune 500 companies. Approximately $266 billion in revenue per year runs through its system. Its customers include Electronic Arts, Symantec, Dunn & Bradstreet, GE, NetApp, Concur and PopSugar. The company doesn’t have any venture capital funding, but is cash flow positive.
As part of the deal, Zuora will add Leeyo RevPro, a cloud-based system that complies with both the U.S. GAAP and International Financial Reporting Standards versions of the revenue recognition standard, to its order-to-cash products. Leeyo’s RevPro software automates revenue recognition processes, helping businesses save time on the transition to the new standard.
“Every company, regardless of revenue mix, product or service offerings, will be impacted by these new accounting standards,” said Zuora CEO Tien Tzuo. “We’ve partnered with Leeyo for over three years, and today we join forces to help our customers alleviate the burden of dealing with these new standards.”