Following more than a month's worth of rumors around Cvent's possible sale, the event-technology giant has struck a $4.6 billion deal to be acquired by private equity funds managed by Blackstone.
The $8.50 per share that stockholders will receive represents a gain of 52 percent 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 percent 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 $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 $3.9 billion offer from Blackstone last month, according to Reuters. The finalization 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 Cvent deal.
"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 ecosystem."
The acquisition is subject to regulatory approvals and is expected to close midyear.