Vista Equity Partners, the private equity firm that owns meetings-technology provider Lanyon, will acquire tech juggernaut Cvent for $1.65 billion, Cvent revealed today. Vista will acquire 100 percent of Cvent's outstanding shares at $36 per share, a premium of about 69 percent over Cvent's April 15 closing price and a 70 percent premium over Cvent's average closing price over the last 30 days. The deal was unanimously approved by Cvent's board of directors and is subject to customary closing conditions, including the approval of Cvent stockholders and required regulatory approvals. The companies expect the acquisition to close in the third quarter of this year, at which point Cvent would become a private company, still headquartered in Tysons Corner, Va.
"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."
For its part, Vista wants to build on Cvent's already meteoric growth. "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."
Vista Equity Partners acquired Active Network in October 2013, which had purchased Cvent's primary competitor, StarCite. The following February, Vista spun off the Active Network Business Solutions Group, including StarCite's technology, and merged it with hotel-technology provider Lanyon, another company in its portfolio. The combined meetings and hotel technology company has been operating as Lanyon since then. Given Vista's track record, the Cvent acquisition could mean further consolidation in the space.
Even with Lanyon and Cvent operating as separate entities, however, having both companies under the same ownership umbrella represents control of a significant portion of the market. While hundreds of meetings technology companies provide at least some part of what Cvent or Lanyon offers, none can boast the wide scope of services, Fortune 500 customer base and volume of electronic requests for proposal represented by the tech giants.
Vista Equity Partners, Cvent and Lanyon all declined to comment further on the transaction.