Following more than a month's worth of rumours around Cvent's possible
sale, the event-technology giant has struck a US$4.6 billion deal to be
acquired by private equity funds managed by Blackstone.
US$8.50 per share that stockholders will receive represents a gain of
52% over the average share price for the 90 days preceding the Wall
Street Journal report that first leaked the news about a potential
acquisition. Prior to that, Cvent's shares had fallen about 34% last
year, according to Reuters.
Majority stockholder Vista Equity Partners will reinvest some of its
proceeds from the sale to help finance the deal. Vista first took Cvent
private in 2016 when it acquired the company for US$1.65 billion, and
then returned Cvent to public trading in late 2021 through a special
acquisition deal with Dragoneer Growth Opportunities.
Cvent rejected a US$3.9 billion offer from Blackstone last month,
according to Reuters. The finalisation of this new deal comes amid a
major scramble among tech startups and investors, in the wake of last
week's collapse of Silicon Valley Bank. According to Bloomberg, Vista
Equity Partners is among the many private equity firms with dozens of
portfolio companies that banked with SVB.
Blackstone has deep ties in the hospitality industry, with a major
portfolio of hotel real estate assets. A subsidiary of the Abu Dhabi
Investment Authority will be a significant minority investor in the
"We look forward to our next chapter alongside the Blackstone team,"
said Cvent founder and CEO Reggie Aggarwal. "As one of the world’s
largest private equity firms, Blackstone brings deep expertise in the
event and hospitality industry, and with their backing, we plan to
continue to invest in our business and deliver the innovative solutions
that meet our customers’ needs and power the meetings and events
The acquisition is subject to regulatory approvals and is expected to close midyear.
Source: Northstar Meetings Group