Following the completion of the deal, the events and hospitality technology provider will become a privately held company and its common stock will no longer be publicly listed

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Cvent to be acquired by Blackstone in $4.6bn deal. (Credit: Tumisu from Pixabay)

Cvent, a meetings, events, and hospitality technology provider, has agreed to be acquired by an affiliate of private equity funds managed by asset manager Blackstone at an enterprise value of about $4.6bn.

As per the terms of the agreement, the US-based publicly-listed firm’s stockholders will be paid $8.5 per share in cash.

The consideration offered to Cvent represents a premium of 52% to the volume weighted average share price over the 90 days prior to 30 January 2023.

Following the completion of the deal, the events and hospitality technology provider will become a privately held company and its common stock will no longer be publicly listed.

As part of the deal, a fully-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will become a significant minority investor along with Blackstone.

Cvent founder and CEO Reggie Aggarwal said: “We are excited to share this announcement and look forward to our next chapter alongside the Blackstone team.

“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.”

Founded in 1999, Cvent claims to cater to nearly 22,000 customers worldwide in the corporate, non-profit, higher education, and hospitality segments.

As a part of the deal, Cvent’s majority stockholder Vista Equity Partners has committed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

Blackstone senior managing director David Schwartz 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.”

Subject to Cvent stockholders’ approval, customary conditions, and regulatory approvals, the transaction is anticipated to close mid-year 2023.