The proposed acquisition of meetings-technology juggernaut Cvent by Vista Equity Partners, parent of Lanyon, is drawing increased government scrutiny, according to a Wall Street analyst. Last week, a Washington, D.C., regulatory publication highlighted the deal as one with potential competition concerns. Cvent's stock dipped by more than a dollar shortly thereafter, its biggest drop since the stock surged when the deal was announced in mid-April. In trading this week, the stock recovered slightly but has hovered in a range below the surge it enjoyed after the sale announcement.
The U.S Department of Justice issued a "second request" for information from Vista and Cvent on June 30, indicating a more thorough investigation into the transaction. Last week, the department filed suit to block the Cigna/Anthem and Humana/Aetna deals in the managed-care sector, the analyst pointed out, which has investors concerned the Justice Department is "out for more blood" after blocking those and other deals such as the proposed Office Depot/Staples merger earlier this year. Antitrust regulators have seemingly been focused on client base and national account services in these investigations, which, the analyst pointed out, could be a factor in the Vista/Cvent deal.
Cvent representatives were unable to comment on the situation. According to documents filed at the time of the Vista announcement, however, Cvent representatives also had high-level discussions with three other parties that were interested in purchasing the company. Two of those parties made offers for Cvent before the Vista deal was accepted.