The events technology and hospitality software provider Cvent Inc recently announced that they have decided to go private again in a $4.6 billion deal with private equity firm Blackstone. This deal includes $36 per share in cash and is expected to close in the fourth quarter of 2021.
This is not the first time Cvent has chosen to go private. In September 2012, the company went public after being acquired by technology investment firm Vista Equity Partners for an undisclosed sum. Now eight years later, Cvent is once again reverting to private status.
Cvent has experienced rapid growth in its software-as-a-service (SaaS) events business and related offerings during the past few years. Current Cvent CEO Reggie Aggarwal commented on the company’s decision to go private saying, “There’s no question that we feel very strongly that the election to return to private ownership is what’s best for our organization and ultimately for our customers.”
According to experts, Cvent’s decision to return to private ownership could be beneficial to their growth as it will allow them to focus on long-term investments without the pressure of reporting their financials. This should enable Cvent to make decisions based on the long-term sustainability of their business rather than the current quarter’s results.
Moreover, thanks to the public listing of Cvent’s shares in 2012, the company’s stockholders have seen considerable returns on investment during its period of being publicly listed. Similarly, going private could also be beneficial to Blackstone as the private equity giant could potentially gain access to Cvent’s growing enterprise customer base of over 26,600 customers.
Overall, as Cvent once again decides to go private, this could be a win-win situation for both Cvent and Blackstone.