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© Reuters. FILE PHOTO: Signage is seen exterior the Blackstone Group headquarters in New York Metropolis, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photograph
By Milana Vinn
(Reuters) – Cvent Holding Corp, 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 (NYSE:) Inc, folks conversant in 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 personal 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.
Primarily based in Tysons, Virginia, Cvent provides a advertising 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.
Cvent shares have since dropped because of considerations that an financial slowdown, led to by the U.S. Federal Reserve’s larger 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 personal fairness companies are pouncing on the plunge in valuation of some corporations of their pursuit of a cut price, particularly within the know-how sector the place many shares posted massive drops.
Rajeev Aggarwal, the founder and chief government of Cvent, mentioned on the corporate’s third-quarter earnings name with analysts in November that, whereas the corporate anticipated to take successful from a possible recession, it additionally anticipated to win market share.
“Despite the fact that our enterprise just isn’t recession-proof, we consider 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 12 months 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.
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