An affiliate of private equity funds managed by New York City-based alternative asset manger Blackstone entered into a definitive agreement to purchase meetings, events and hospitality technology provider Cvent in a deal valued at an enterprise value of $4.6 billion, according to a news release.
As part of the transaction, a wholly owned subsidiary of the Abu Dhabi Investment Authority will be a minority investor alongside Blackstone.
Additionally, Vista Equity Partners, a global investment firm focused on enterprise software, data and tech-based business, and majority stockholder of Cvent, will invest some of its proceeds as "non-convertible preferred stock in financing for the transaction," the release states.
Cvent stockholders will receive $8.50 per share in cash under the terms of the agreement.
Cvent, which was founded in 1999 in Tysons, Virginia, has roughly 22,000 customers across the globe in the hospitality, corporate, nonprofit and higher education sectors as of Dec. 31, 2022. It has helped manage more than 5 million events and lists more than 302,000 hotels and venues on the Cvent Supplier Network, an online platform with tools to search and negotiate contracts for event space with hotels and other venues.
We "look forward to our next chapter alongside the Blackstone team,” Reggie Aggarwal, founder and CEO of Cvent, said in the release. “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.”
Martin Brand, head of North America Private Equity and Global Co-Head of Technology Investing at Blackstone, added that “Cvent is an industry leader and we are excited to partner with their management team to continue the firm’s innovation and deliver world-class technology solutions to customers in the event and hospitality space."
The deal is expected to close midyear 2023.