Meetings technology giant Cvent is going private again after
agreeing terms with Blackstone in a deal worth $4.6 billion.
Cvent, which first floated in 2013 and then again in 2021,
said that its shareholders would receive $8.50 per share in the deal - a 52 per
cent premium of Cvent’s average share price over the past 90 days.
Private equity firm Blackstone’s initial offer of $8
per share was rejected by Cvent in January.
A subsidiary of the Abu Dhabi Investment Authority will also
be a ‘significant minority investor’ in Cvent alongside Blackstone.
The deal is expected to be finalised by the middle of the
Reggie Aggarwal, founder and CEO of Cvent, said: “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, which was founded in 1999, has around 22,000
customers in the corporate, non-profit, higher education and hospitality
sectors. The company has helped manage more than five million events since its
creation and lists more than 302,000 hotels and venues on its online supplier
David Schwartz, senior managing director at Blackstone,
said: “The continued events and travel recovery is one of Blackstone’s
highest-conviction investment themes.
“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.”
Blackstone has invested in a host of travel firms in the
past few decades and has previously owned tech specialist Travelport and hotel
Investment firm Vista Equity Partners, which is currently
Cvent’s majority shareholder, will use a “portion” of its proceeds from the
sale to Blackstone to finance the transaction.
Monti Saroya, chairman of Cvent’s board of directors and
co-head of the Vista Flagship Fund, added: “The newly digitised 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
* Additional reporting Rob Gill for BTN Europe