Cvent, An Event Software Company, To Be Acquired by Blackstone In An Agreement Valued At $4.6 Billion

Blackstone Inc. has decided to acquire the event software company Cvent Holding Corporation in an agreement with a valuation of 4.6 billion USD.

The terms of the agreement have stated that Cvent shareholders will receive 8.50 USD in cash, a premium of 52 percent in the weighted average of the share price over 90 days before January 30. It was revealed when the media reports of a potential acquisition were published. The filings have shown that a subsidiary of the Abu Dhabi investment authority will be a significant minority investor in the acquisition.

Cvent is an event management firm that provides software to take care of live and virtual events that has been in private hands previously after the Vista Equity partners purchased a Virginia-based company named Tyson in 2016 for about 1.65 billion USD. Cvent has decided to merge its business with the special-purpose acquisition company named Dragoneer Growth Opportunities Corp II, which made it to the public list again.

The shares of Cvent have hiked by 37 percent this year because the company has profited from the renewed interest in travel and events after years of a halt during the covid-19 pandemic. The company has around 22000 customers globally in the nonprofit, corporate, and higher education and hospitality industries.

Cvent Chief Executive Officer Reggie Agarwal has talked about the acquisition stating that Blackstone would bring deep expertise in the hospitality and event industry, and with their backing, they plan to continue to invest in the business and provide innovative solutions that would meet the customer’s needs and power the even ecosystem.

Vista, as a part of the transaction, has decided to invest a part of its holdings as a non-convertible preferred stock in financing the deal. The former is a majority stakeholder of the Cvent.

Blackstone will increase deep expertise in the event and hospitality industry after the acquisition of Cvent:

Cvent’s comprehensive suite of technology solutions powers the entire event management process to maximize the impact of events. Cvent has had approximately 22,000 customers worldwide in the organizational, non-profit, education, and hospitality sectors since  December 31, 2022. Cvent has aided in the management of over 5 million events since its inception in 1999 and records over 302,000 hotels and locations on the Cvent Supplier Network, an online network with tools for search strategies, making deals, and contract management with hotels and venues for an event venue, as of December 31, 2022.

“The continued events and travel recovery are one of Blackstone’s highest-conviction investment themes,” said David Schwartz, Senior Managing Director at Blackstone. Given their extensive experience in the hospitality, events, and real estate sectors, we believe Blackstone is well positioned as a growth partner for this exceptional company.”

The Head of North America Private Equity, Martin Brand, and the Global co-head of Technology Investing at Blackstone have stated that Cvent is an industry event leader and shared that they are excited to collaborate with the management team to continue with the innovations of the firm and deliver top-notched solutions to the investors in the event and hospitality ecosystem.

“Since Vista’s initial investment, Cvent has undergone a significant business transformation, demonstrating how we work with founders like Reggie to help their businesses grow and succeed,” said Monti Saroya, Chairman of the Cvent Board of Directors, Co-Head of the Vista Flagship Fund, and Senior Managing Director. The newly digitalized events environment, combined with Cvent’s existing customer base and commitment to creativity, has created a new growth matrix in a post-COVID world. They are excited to see how businesses work to capitalize on the opportunities that lie ahead.

The event has been approved by the Board of directors unanimously, followed by the recommendations of the special committee. The transaction will be completed by mid-year 2023. After the completion of the transaction, Cvents stocks will no longer be publicly listed and will be considered a privately held company.

Blackstone has received a credit facility of 1 billion USD as a part of financing the acquisition.
Blackstone is the largest alternative investment manager in the world. They aim to generate positive economic impact and long-term value for investors, the companies, and the communities in which they operate.

They accomplish their goals by utilizing exceptional people and flexible capital to assist businesses in resolving problems. Their global assets under management total $975 billion and include private equity, real estate, and many others.

Edited by Prakriti Arora