The U.S. Department of Justice has cleared the proposed acquisition of Cvent by Vista Equity Partners for $1.65 billion. "Cvent and Vista have agreed that all conditions to the completion of the merger have now been irrevocably satisfied," said Cvent, according to M&C's sister publication, Business Travel News, and the merger will close by Nov. 29. Cvent's stock rose rapidly midday on Thursday, indicating the merger had progressed through the DOJ's antitrust consideration.
Cvent Inc., a leading cloud-based enterprise event-management company, will become a privately held company owned by affiliates of Vista Equity Partners, a private equity firm focused on investments in software, data and technology-enabled businesses.
The terms of this all-cash deal provide substantial value to Cvent stockholders. Vista will acquire 100 percent of the outstanding shares of Cvent common stock for a total value of approximately $1.65 billion. Cvent stockholders will receive $36 in cash per share, representing a premium of approximately 69 percent over Cvent's closing price on April 15, 2016, and a 70 percent premium to Cvent's average closing price over the past 30 trading days.
"We are pleased to announce this transaction that provides a significant premium for Cvent stockholders," said Reggie Aggarwal, founder and CEO of Cvent, in a statement. "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."
"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."
Cvent's board of directors unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. Cvent's headquarters will remain in Tysons Corner, Va.
Morgan Stanley is serving as financial advisor to Cvent, and Wilson Sonsini Goodrich & Rosati Professional Corp. is serving as legal adviser to Cvent. Vista's legal adviser is Kirkland & Ellis LLP.