Events software vendor Cvent rebuffs $3.9 bln Blackstone bid-sources
24/02/2023 17:49
By Milana Vinn
Feb 24 (Reuters) - Cvent Holding Corp CVT.O , a U.S.
software provider that facilitates in-person and virtual
meetings, has rejected a $3.9 billion acquisition offer from
buyout firm Blackstone Inc BX.N , people familiar with the
matter said on Friday.
Blackstone is taking a break from the negotiations after
Cvent rejected its $8-per-share offer as too low, the sources
said. Shares of Cvent, which is controlled by private equity
firm Vista Equity Partners Management LLC, had ended trading on
Thursday at $7.64.
Cvent was not exploring a sale when Blackstone approached it
with an unsolicited offer, and it is unclear whether the latter
with return with a new offer or if any other bidder will emerge.
The sources asked not to be identified because the matter is
confidential. Cvent, Blackstone and Vista Equity declined to
comment.
Based in Tysons, Virginia, Cvent offers a marketing and
management platform used by the events and hospitality
industries. Vista acquired Cvent for $1.65 billion in 2016 and
took it public at a $5.3 billion valuation in a merger with a
blank-check acquisition company in 2021.
Cvent shares have since dropped due to concerns that an
economic slowdown, brought about by the U.S. Federal Reserve's
higher interest rates to fight inflation, will lower demand for
conferences and events that drive the company's business.
Blackstone's acquisition attempt highlights how some private
equity firms are pouncing on the plunge in valuation of some
companies in their pursuit of a bargain, especially in the
technology sector where many stocks posted big drops.
Rajeev Aggarwal, the founder and chief executive of Cvent,
said on the company's third-quarter earnings call with analysts
in November that, while the company expected to take a hit from
a potential recession, it also expected to win market share.
"Even though our business is not recession-proof, we believe
we are recession resilient," Aggarwal said.
In the third quarter, Cvent reported adjusted earnings
before interest, taxes, depreciation and amortization of $33.7
million, up from $23.4 million a year ago. Revenue jumped 20.3%
year-on-year to $161.3 million.
Vista owned 81.5% of Cvent as of the end of December.
(Reporting by Milana Vinn in New York; Editing by Josie Kao)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))