Zuora Inc., the leading provider of subscription commerce, billing and finance and the world’s leading evangelist of the Subscription Economy, announced today it has signed a definitive agreement to acquire Leeyo Software. Read the full press release here.
Zuora and Leeyo have worked closely together as partners since 2014 on developing an interface between the two products, to provide the best revenue recognition capabilities to Zuora’s subscription-based customers. Currently, there is an integration between the two companies for ASC 605, and the ASC 606 integration is well under way.
The two companies have also produced such notable content as this white paper, “Ramp Up to the New Revenue Standards in the Subscription World,” and assorted other content, demonstrating a close alignment in their approach to helping companies adopt the new, principle-based revenue guidelines detailed in ASC 606 and IFRS 15.
Leeyo was an attractive target for Zuora, because the subscription giant wanted to help the global subscription economy deal with the crushing burden of imminent accounting standards. As the largest provider of revenue recognition automation, Leeyo–which processes an estimated $266B in revenue annually–is the undisputed leader in this space.
As we have previously reported on this blog, these accounting changes are major and adoption deadlines are right around the corner. It has been estimated companies will spend around $1M/year to address those changes. Leeyo and Zuora believe automation is a key to streamlining a company’s complex revenue processes.
Leeyo will be fully incorporated into Zuora, but no matter the name of the company, we will remain committed to providing customers, prospects and partners with best-in-class revenue recognition.