Cvent to go public again at US$5.3bn valuation; Zoom investing

The events software leader enters a SPAC deal expected to raise US$801 million.

Cvent CEO & Founder Reggie Aggarwal says bookings have grown from US$32 million pre-pandemic to US$266 million in twelve months.
Cvent CEO & Founder Reggie Aggarwal says bookings have grown from US$32 million pre-pandemic to US$266 million in twelve months.

Cvent has confirmed plans to go public by the fourth quarter of this year through a merger with special purpose acquisition company Dragoneer Growth Opportunities Corp, II.

Cvent was a publicly traded company from 2013 to 2016 before it was acquired by Vista Equity Partners.

The latest SPAC deal values the event management software company at US$5.3 billion. When the merger closes, the combined company will operate as Cvent Holding Corp., and is expected to trade under the ticker symbol CVT.

The deal is expected to raise US$801 million in capital, with which Cvent plans to "increase investment in our products, deepen our functionality, expand our customer-facing teams, and strengthen our balance sheet," according to Cvent CEO & Founder Reggie Aggarwal.

Zoom Video Communications, which recently announced Zoom Events, will be part of a group of investors participating through US$475 million of private investment in public equity (PIPE) at US$10 per share.

CFO of Zoom, Kelly Steckelberg, said: “Cvent and Zoom share a common mission to bring people together through technology. We believe that Cvent’s event technology is complementary to what we offer as a video communications leader, and our organisations already have a long track record of working together as technology partners and as users of each other’s solutions."

Other PIPE investors include Fidelity Management & Research Company LLC, Hedosophia, Oaktree Capital Management L.P.

Vista Equity Partners and Cvent management will roll the entirety of their existing equity holdings into the combined company.

Commenting on the decision to enter the deal with Cvent, Dragoneer Founder and Managing Partner Marc Stad said: "In the second half of 2020, Cvent launched its virtual events solution, and ever since, this virtual product line has been growing rapidly and has been well-received by customers. As the world reopens, we expect to move into a hybrid world that combines elements of in-person and virtual events. With the optionality, flexibility and reach that Cvent can provide, we expect organisations to increasingly turn to Cvent to expand their audiences and create new, user-friendly ways for both virtual and in-person participants to interact with their events."

Arggawal shared that Cvent is facing massive growth opportunities with the industry at an inflection point.

"In-person events allow attendees to build deeper, stronger relationships. And our data shows that engagement levels are significantly higher at in-person events," he explained.

"Virtual events deliver incredible reach at a lower cost. And hybrid delivers the best of both worlds."

The Cvent founder added that now is "the most fired up" he's been in over 20 years of running the company due to these "new vectors of growth".

The company launched its new virtual product when it took its customer conference online in August, 2020. The event attracted 40,000 registrants, almost 10 times bigger than the previous year.

Next up, Cvent CONNECT USA 2021 is happening from 1 to 4 August at Caesars Forum, Las Vegas. As of this article's writing, all live booths have been sold out, while virtual booths remain open for booking.

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