Cvent to be acquired in $4.6B deal

Tysons-based meetings and events software company Cvent Holding Corp. has agreed to be acquired by New York-based private equity firm Blackstone in a deal valued at about $4.6 billion, the company announced Tuesday.

Under the agreement, Cvent stockholders will receive $8.50 per share in cash, representing a premium of 52% to the volume weighted average share price over the 90 days prior to Jan. 30, the day before news reports of a potential sale. A wholly-owned subsidiary of the Abu Dhabi Investment Authority will be a significant minority investor alongside Blackstone as part of the transaction.

Founded in 1999 by CEO Reggie Aggarwal, Cvent has about 4,900 employees and approximately 22,000 customers. Cvent has helped manage more than 5 million events and lists more than 302,000 hotels and venues via its Cvent Supplier Network, an online platform with tools to search, negotiate and contract with hotels and venues for event space.

“We are excited to share this announcement and look forward to our next chapter alongside the Blackstone team,”  Aggarwal said in a statement. “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.”

Cvent adapted to provide remote events software in addition to its live event management services amid the pandemic.

“The continued events and travel recovery is one of Blackstone’s highest-conviction investment themes,” David Schwartz, a senior managing director at Blackstone, said in a statement. “Given our extensive experience in the hospitality, events and real estate sectors, we believe Blackstone is well-positioned as a growth partner for this exceptional business.”

In connection with the transaction, investment firm Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as nonconvertible preferred stock in financing for the transaction. In 2016, Vista acquired Cvent for $1.65 billion and took it private. Cvent again went public in December 2021 after closing a $5.3 billion merger with San Francisco-based SPAC Dragoneer Growth Opportunities Corp. II.

“Since Vista first invested, Cvent has undertaken considerable business transformation and has been a testament to how we partner with founders like Reggie to help their businesses scale and thrive,” Cvent Board Chair Monti Saroya, who is also co-head of the Vista Flagship Fund and a senior managing director, said a statement. “The newly digitized events landscape, coupled with Cvent’s strong existing customer base and commitment to innovation, has provided a new growth vector in a post-COVID world. We look forward to seeing the company continue to execute on the opportunities ahead of it.”

The transaction is expected to close mid-year 2023, subject to the satisfaction of customary closing conditions, including receipt of approval by Cvent’s stockholders and required regulatory approvals. Upon completion of the transaction, Cvent’s common stock will no longer be publicly listed, and Cvent will become a privately held company.

Blackstone has $975 billion in assets under management, including in private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds.