Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
Exclusive-Events software vendor Cvent rebuffs $3.9 billion Blackstone bid-sources
Published Feb 24, 2023 12:52PM ET
Updated Feb 24, 2023 01:20PM ET
© Reuters. FILE PHOTO: Signage is seen outside the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo
By Milana Vinn
(Reuters) - Cvent Holding Corp, a U.S. software provider that facilitates in-person and virtual meetings, has rejected a $3.9 billion acquisition offer from buyout firm Blackstone (NYSE:BX) Inc, 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.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.