CVT - Cvent agrees to be acquired by Blackstone in $4.6B deal

2023-03-14 08:01:31 ET

Cvent ( NASDAQ: CVT ) fell over 3% premarket on Tuesday after the cloud-based event-software maker announced a definitive deal to be acquired by an affiliate of private equity funds managed by Blackstone ( NYSE: BX ) in a $4.6B transaction.

Pursuant to the agreement, Cvent ( CVT ) stockholders will receive $8.50 per share in cash. That represents a 52% premium to the volume weighted average share price over the 90 days prior to January 30, 2023 - the day before media reports of a potential transaction were published.

In late February 2023, Cvent ( CVT ) reportedly rejected Blackstone's $8/share acquisition bid

Reggie Aggarwal, founder and CEO of Cvent, stated: "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 transaction, which has been unanimously approved by Cvent board, is expected to close mid-year 2023. Upon deal closing, Cvent’s common stock will no longer be publicly listed, and Cvent will become a privately held company.

Blackstone ( BX ) has secured a $1B credit facility as part of the financing of this transaction. Additionally, Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the deal.

For further details see: