- Blackstone Inc (NYSE:BX) affiliates agreed to acquire Cvent Holding Corp (NASDAQ:CVT) in a transaction worth approximately $4.6 billion enterprise value.
- Cvent stockholders will receive $8.50 per share in cash, representing a premium of 29.4% to Jan. 30, 2023, closing price of $6.57, the day before media published reports of a potential transaction.
- A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will be a significant minority investor alongside Blackstone.
- Vista Equity Partners, a 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.
- The transaction will likely close mid-year 2023.
- Blackstone has received a fully committed $1.0 billion credit facility as part of the financing of this transaction.
- Today Cvent reported fourth-quarter revenue growth of 18.2% year-on-year to $170.9 million, beating the consensus of $169.7 million.
- Event Cloud revenue was $120.6 million, up by 17.2% Y/Y. Hospitality Cloud revenue was $50.3 million higher by 20.5% Y/Y.
- Adjusted gross margin contracted 150 bps to 74.5% as the costs surged 23.8% Y/Y.
- Adjusted EBITDA margin increased by 280 bps to 25.5%.
- EPS loss of $(0.04) missed the consensus of $0.06.
- Cvent held $140 million in cash and equivalents and used $(17) million in operating cash flow.
- Price Action: CVT shares traded higher by 12.3% at $8.31 on the last check Tuesday.
Asia Up, Europe Markets Mixed; Gold Hovers Around $2,000 – Global Markets Today While US Was Sleeping
On Thursday, November 2nd, U.S. stock markets closed higher amid optimism that the Fed's rate hikes have peaked and positive quarterly reports boosted sentiment.
U.S. weekly jobless claims rose slightly to 217,000, exceeding predictions of 210,000, while nonfarm business labor costs dropped by 0.8% in Q3 after a 3.2% previous quarter increase.
