Vista Equity to buy Cvent for $1.65bn

June 2016 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

In a move designed to expand its technology portfolio, private equity firm Vista Equity Partners is to enter into a definitive agreement to acquire all the outstanding stock of Cvent Inc.

Under the terms of this all-cash transaction, Vista will acquire 100 percent of the outstanding shares of Cvent common stock for a total value of approximately $1.65bn – a deal which provides substantial value to Cvent stockholders

Furthermore, Cvent stockholders will receive $36 in cash per share, representing a premium of approximately 69 percent over Cvent’s closing price (as of 15 April 2016) and a 70 percent premium to its average closing price over the previous 30 trading days.

A leading cloud-based enterprise event management company with approximately 16,000 customers and 2000 employees worldwide, Cvent offers software solutions to event planners for online event registration, venue selection, event management, mobile apps for events, email marketing and web surveys.

Additionally, Cvent provides hoteliers with an integrated platform, enabling properties to increase group business demand through targeted advertising and improve conversion through proprietary demand management and business intelligence solutions. Cvent solutions also optimise the entire event management value chain and have enabled clients around the world to manage hundreds of thousands of meetings and events.

Cvent’s deal with Vista is in stark contrast to the situation the provider of software solutions for managing meetings and events found itself in during 2001, when the tech-stock bubble burst and many companies found themselves grinding to a halt.

“We are pleased to announce this transaction that provides a significant premium for Cvent stockholders,” said Reggie Aggarwal, founder and CEO of Cvent. “This milestone is the next chapter in our 17-year history. With Vista’s financial strength to invest in Cvent now and in the future, we will be better positioned to deliver innovative solutions that transform the meetings and events industry, and to offer employees new opportunities for career growth.”

Vista, Cvent’s acquirer, is a leading private equity firm focused on investments in software, data and technology-enabled businesses. The US-based company, with offices in Austin, Chicago and San Francisco, has more than $20bn in cumulative capital commitments and currently invests in software, data and technology-based organisations led by world-class management teams with long-term perspective.

Fundamentally, Vista is a value-added investor which contributes professional expertise and multi-level support to companies so that they can realise their full potential. Furthermore, Vista’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing.

“Reggie and the Cvent team have built a leading portfolio of products and are positioned for expansion in a large and underpenetrated market,” said Brian Sheth, co-founder and president of Vista. “We are excited to work with the Cvent team to lead the business into this next phase. Over the last several years, Vista has developed a leading portfolio of meeting technology providers. This acquisition is our most significant investment in this space, and further solidifies our commitment to the broader industry.”

Upon completion of the transaction, Cvent will become a privately held company with its headquarters remaining in Tysons Corner, Virginia. The company’s s board of directors has unanimously approved the deal and has recommended that stockholders vote their shares in favour of the transaction.

Cvent’s closing of the deal is subject to customary closing conditions, including the approval of Cvent stockholders and required regulatory approvals.

Morgan Stanley is serving as financial adviser to Cvent for the transaction, while Wilson Sonsini Goodrich & Rosati is serving as legal adviser to Cvent. Vista’s legal adviser is Kirkland & Ellis LLP.

The Vista/Cvent transaction is expected to close in the third quarter of 2016.

Fraser Tennant