Why Cvent Shares Are Jumping Today

• 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.

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