Cvent has agreed to go public through a merger with a special-purpose acquisition company. The deal values Cvent at more than $5 billion, including debt, and means Cvent will once again be a public company.
Event tech giant Cvent announced today a merger agreement with a special-purpose acquisition company to become a publicly-traded company once again, now operating as Cvent Holding Corp. The deal underscores the growing value of event tech companies since the start of the pandemic. The news was first reported on Tuesday by the Wall Street Journal.
The transaction implies a pro forma, post-money enterprise valuation of approximately $5.3 billion for Cvent. Cvent expects to raise $801 million in cash to accelerate product innovation, increase research and development, reduce debt, and expand go-to market activities.
Among the investors is Zoom Video Communications, Inc., which is expected to take a 10% portion of the equity being raised for the deal. Other investors include Fidelity Management & Research Company LLC, Hedosophia and Oaktree Capital Management L.P.
Cvent previously went public in 2013 through a $135 million IPO. Vista Equity Partners took the company private again in 2016 through a $1.65 billion deal. As part of that deal, Cvent merged with Lanyon, which was already part of the Vista portfolio.
The deal will involve merging with Dragoneer Growth Opportunities Corp. II, a special purpose acquisition company formed by an affiliate of Dragoneer Investment Group, LLC, a San Francisco-based company that describes itself as a growth-oriented investment firm with over $17 billion in long-duration capital from many of the world’s leading endowments, foundations, sovereign wealth funds, and family offices.
Cvent, one of the most significant event tech vendors with 4,000 employees and more than 200,000 users worldwide, was one of many event tech vendors to add virtual event capabilities back in August of 2020.
According to the Wall Street Journal, this part of the business now generates more than $100 million in revenue. This equates to approximately 20 percent of the reported $500 million in annual sales. The remainder continues to come from both its event marketing and management; and its venue sourcing platforms.
This story was first released on July 20 and edited to include details of Cvent’s official announcement on July 23.