On Monday morning, Cvent Inc. (NYSE: CVT), a leading cloud-based enterprise event management platform, announced that it has entered into a definitive agreement to be acquired by affiliates of Vista Equity Partners which is a leading private equity firm focused on investments in data, software and technology-enabled businesses.
Vista Equity Partners reported that it would acquire Cvent for $36 per share, or approximately $1.65 billion. The price is a 69% premium over Cvent’s $21.30 last price on Friday. Shares of Cvent jumped up 65.63% to $35.28 during Monday morning trading.
“We are pleased to announce this transaction that provides a significant premium for Cvent stockholders,” said Reggie Aggarwal, founder and CEO of Cvent. “This milestone is the next chapter in our 17-year history. With Vista’s financial strength to invest in Cvent now and in the future, we will be better positioned to deliver innovative solutions that transform the meetings and events industry, and to offer employees new opportunities for career growth.”
Cvent went IPO in 2013 at $21 per share, then the company’s shares increased quickly over $40. However recently, the stock price has struggled, down below $20 in February 2016 but rising back after whole market rebound.
The Board of Cvent unanimously agreed the acquisition deal. After the transaction, the company will become a privately company. The headquarters of Cvent will remain in Tysons Corner, Va. This acquisition is expected to close in the third quarter of the year, pending shareholder approval and other customary closing conditions.