Cvent rejects $3.9bn purchase bid from Blackstone

A $3.9bn purchase bid from buyout company Blackstone has been rejected by Cvent, a US software supplier that supports in-person and virtual meetings, Reuters has reported quoting individuals with knowledge of the situation.

Blackstone withdrew from the talks when Cvent rejected its $8 per share offer as being too low. Vista Equity Partners Management LLC, a private equity firm, owns the majority of the shares of Cvent. Trading in its shares finished on Thursday at $7.64.

When Blackstone approached Cvent with an unsolicited offer the company was not considering a sale. It is unknown if Blackstone would make another unsolicited offer or if any other bidders will emerge.

Cvent, a marketing and management platform utilized by the hotel and events sectors, is based in Tysons, Virginia. In 2016 Vista paid $1.65 billion to purchase Cvent and in 2021 after merging with another acquisition business with a blank check it went public at a price of $5.3 billion.

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Since then Cvent shares have decreased owing to worries that a downturn in the economy brought on by the US Federal Reserve’s increased interest rates to combat inflation will result in a decline in demand for conferences and events which are crucial to the company’s operations.

Blackstone’s purchase effort demonstrates how some private equity firms are taking advantage of a drop in some company valuations in their search for deals, particularly in the technology sector where several equities achieved significant gains.

On the business’s third-quarter results call with investors in November, Cvent’s founder and CEO, Rajeev Aggarwal, stated that while the company anticipated suffering from a future recession, it also anticipated gaining market share.

Cvent reported adjusted profits before interest, taxes, depreciation and amortization of $33.7 million for the third quarter, up from $23.4 million in the same period last year. At $161.3 million, revenue increased 20.3% year over year. At the end of December, Vista held 81.5% of the shares of Cvent.

Source: Dunya News

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