Did you hear? The news broke this week about Cvent, the event technology titan, striking a $4.6 billion acquisition deal. Cvent will be acquired by Blackstone private equity funds.
Here’s what we know about this deal. And here’s what it means for event planners and the events industry.
The Official Acquisition Report
The Wall Street Journal first shared the news about the Cvent acquisition. And Blackstone shared the press release on March 14th. Cvent Holding Corp. (Nasdaq: CVT) has entered into an official and “definitive agreement” to be acquired by an affiliate of Blackstone’s private equity funds. The transaction is valued at $4.6 billion.
The terms of this acquisition agreement, Cvent stockholders can expect $8.50 per share as cash. This amount represents 52% percent of the average share price spanning the 90 days prior to January 30th of this year, which is the day before media leaked the news of a potential acquisition.
The Abu Dhabi Investment Authority (ADIA)’s wholly owned subsidiary is going to be the minority investor, along with Blackstone, in this transaction.
Rumors had already been circulating earlier this year. And last month, Reuters reported that Cvent rejected a $3.9 billion Blackstone offer.
Blackstone is well-established in the hospitality industry, with real estate investments in its portfolio, like Hilton Worldwide, Trizec Properties, La Quinta Inns & Suites, Wyndham Worldwide, Motel 6, and other brands.
The major stockholder, Vista Equity Partners, plans to reinvest some of the proceeds to assist in financing the deal. Vista Equity Partners took Cvent private back in 2016 when it acquired Cvent for $1.65 billion. In Late 2021, through another special acquisition with Dragoneer Growth Opportunities, Cvent returned to public trading.
Cvent is an event technology powerhouse known for its comprehensive suite of tech solutions catered to the event planning and management needs of the industry. It’s estimated that Cvent currently serves 22,000 customers worldwide. These include non-profit organizations, corporate, higher education, and hospitality segments. Since it launched in 1999, Cvent has assisted in event planning more than five million events. It also lists over 300,000 hotels and venues on the Cvent Supplier Network.
What the Future Holds
Reggie Aggarwal, Cvent CEO and founder says, “we look forward to our next chapter alongside the Blackstone team.” A significant benefit of this acquisition is the collaboration of two brands that can combine efforts to advance and improve the hospitality, events, and real estate sectors. David Schwartz, Blackstone's Senior Managing Director, says the extensive “combined experience” will position these companies as “a growth partner for this exceptional business.”
For anyone within the events industry, event planners and hospitality brands included, this acquisition only means big things. Two titans within their segments can combine forces to innovate more and improve how the events industry does business. And it’s a reminder to professionals in the events space just how important collaboration can be in advancing the industry as a whole.
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