Feb 24 (Reuters) – Cvent Holding Corp (CVT.O), a U.S. software program supplier that facilitates in-person and digital conferences, has rejected a $3.9 billion acquisition supply from buyout agency Blackstone Inc (BX.N), folks aware of the matter mentioned on Friday.
Blackstone is taking a break from the negotiations after Cvent rejected its $8-per-share supply as too low, the sources mentioned. Shares of Cvent, which is managed by non-public fairness agency Vista Fairness Companions Administration LLC, had ended buying and selling on Thursday at $7.64.
Cvent was not exploring a sale when Blackstone approached it with an unsolicited supply, and it's unclear whether or not the latter with return with a brand new supply or if every other bidder will emerge.
The sources requested to not be recognized as a result of the matter is confidential. Cvent, Blackstone and Vista Fairness declined to remark.
Based mostly in Tysons, Virginia, Cvent gives a advertising and marketing and administration platform utilized by the occasions 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 firm in 2021.
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Cvent shares have since dropped on account of issues that an financial slowdown, led to by the U.S. Federal Reserve's greater rates of interest to struggle inflation, will decrease demand for conferences and occasions that drive the corporate's enterprise. Blackstone's acquisition try highlights how some non-public fairness corporations are pouncing on the plunge in valuation of some firms of their pursuit of a cut price, particularly within the know-how sector the place many shares posted large drops.
Rajeev Aggarwal, the founder and chief govt of Cvent, mentioned on the corporate's third-quarter earnings name with analysts in November that, whereas the corporate anticipated to take a success from a possible recession, it additionally anticipated to win market share.
“Regardless that our enterprise will not be recession-proof, we imagine we're recession resilient,” Aggarwal mentioned.
Within the third quarter, Cvent reported adjusted earnings earlier than curiosity, taxes, depreciation and amortization of $33.7 million, up from $23.4 million a yr in the past. Income jumped 20.3% year-on-year to $161.3 million.
Vista owned 81.5% of Cvent as of the tip of December.
Reporting by Milana Vinn in New York; Enhancing by Josie Kao
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