Blackstone to Acquire Cvent for $4.6 Billion
March 14, 2023
Industry-leading meetings, events and hospitality technology provider Cvent Holding Corp. (“Cvent”) has entered into a definitive agreement to be acquired by an affiliate of private equity funds managed by Blackstone for approximately $4.6 billion.
According to company officials, under the terms of the agreement, Cvent stockholders will receive $8.50 per share in cash, which represents a premium of 52 percent to the volume weighted average share price over the 90 days prior to Jan. 30, 2023 – the day before media reports were published of a potential transaction.
As part of the transaction, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will be a significant minority investor alongside Blackstone.
Offering a comprehensive suite of technology solutions designed to power the entire event management process, Cvent boasts approximately 22,000 global customers in the corporate, non-profit, higher education and hospitality sectors as of Dec. 31, 2022. Since its founding in 1999, the company has helped manage more than 5 million events, and lists more than 302,000 hotels and venues as of Dec. 31, 2022, on the Cvent Supplier Network, an online platform providing tools to search, negotiate and contract with hotels and venues for event space.
“We are excited to share this announcement and look forward to our next chapter alongside the Blackstone team,” said Cvent Founder and CEO Reggie Aggarwal. “As one of the world’s largest private equity firms, Blackstone brings deep expertise in the event and hospitality industry, and with their backing, we plan to continue to invest in our business and deliver the innovative solutions that meet our customers’ needs and power the meetings and events ecosystem.”
According to David Schwartz, a senior managing director at Blackstone, the continued recovery of the events and travel industry is one of Blackstone’s highest-conviction investment themes.
“Given our extensive experience in the hospitality, events and real estate sectors, we believe Blackstone is well positioned as a growth partner for this exceptional business,” Schwartz said.
Martin Brand, head of North America private equity and global co-head of technology investing at Blackstone, added that Blackstone looks forward to partnering with Cvent’s management team and continuing the firm’s innovation and delivering world-class technology solutions to event and hospitality customers.
In connection with the transaction, Vista Equity Partners (“Vista”), a leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses, and majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.
“Since Vista first invested, Cvent has undertaken considerable business transformation and has been a testament to how we partner with founders like Reggie to help their businesses scale and thrive,” explained Monti Saroya, chairman of the Cvent board of directors, co-head of the Vista Flagship Fund and senior managing director. “The newly digitized events landscape, coupled with Cvent’s strong existing customer base and commitment to innovation, has provided a new growth vector in a post-COVID world. We look forward to seeing the company continue to execute on the opportunities ahead of it.”
Following the recommendation of a special committee composed entirely of independent and disinterested directors, the Cvent board of directors unanimously approved the merger agreement.
The transaction is expected to close mid-year 2023, subject to the satisfaction of customary closing conditions, including receipt of approval by Cvent’s stockholders and required regulatory approvals. Upon completion of the transaction, Cvent’s common stock will no longer be publicly listed and Cvent will become a privately held company.
Blackstone has received a fully committed $1.0 billion credit facility as part of the financing of this transaction.
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Partner Voices
HERE, hosting responsible meetings and caring for our communities are top priorities. Through its 'Focused on What Matters: Embracing Humanity and Protecting the Planet' philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make an impact in the lives of employees, guests, and the communities in which it operates.
Water Stewardship Efforts
MGM Resorts understands the importance of using water efficiently, especially in the desert destination of Las Vegas. Conserving water has always been part of the mission, but MGM Resorts has expanded its ambition into water stewardship.
In 2022, MGM Resorts President and CEO Bill Hornbuckle signed the CEO Water Mandate—a UN Global Compact initiative mobilizing business leaders to advance water stewardship. MGM Resorts International was the first gaming company to take this important step.
MGM Resorts replaced 200,000 square feet of real grass with drought-tolerant landscaping in Las Vegas.
MGM Resorts pledges to reduce water withdrawal intensity by 33% by 2025 and by 35% by 2030.
From 2007-2021, use of more than 5.6 billion gallons of water was avoided because of conservation efforts.
Caring for One Another
MGM Resorts’ Food Donations Program collects and preserves unserved food from conventions held at MGM Resorts properties, then safely donates to food insecure people in the community. Since the program’s launch in 2016, more than 3.7 million meals toward a 2025 goal of 5 million meals have been donated into the community. Donations include:
Unserved perishable prepared foods from events
Perishable unprepared food from MGM Resorts’ kitchens
Nonperishable food items from minibars and warehouses
The collaboration with Southern Nevada’s primary food bank, Three Square, has developed the infrastructure needed to safely collect, transport, and store food from MGM Resorts properties in Las Vegas, reducing food waste while serving the community.
Fostering Diversity and Inclusion
To MGM Resorts, a diverse and talented workforce is essential to success. By cultivating innovative strategies that consider multiple perspectives and viewpoints, the company creates an inclusive workplace culture that benefits its employees and community. MGM Resorts takes pride in being a welcoming home for veterans, individuals with disabilities, people from diverse backgrounds, LGBTQ+ community members, and more. This commitment to inclusion is reflected in the company's recruitment and hiring practices and its social responsibility initiatives. From the workplace to the community, MGM Resorts' commitment to diversity, equity and inclusion remains unwavering, and its efforts continue to create a more equitable and sustainable world for all.
MGM Resorts understands its responsibility to contribute to the social and economic progress of the communities in which it operates. HERE, we embrace humanity.
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