Visa Equity to acquire Cvent in $1.65 billion deal

The deal is aimed at boosting the equity fund's software portfolio.

Visa Equity Partners has agreed to purchase Cvent in a deal worth $1.65 billion.

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According to an announcement posted Monday, the cloud-based event management company has entered into a definitive agreement with Vista Equity, an investment fund with a particular focus on software, data and technology companies.

Under the terms of the deal, Vista will snap up 100 percent of all outstanding Cvent shares in common stock, worth approximately $1. 65 billion.

Current Cvent stockholders will be awarded $36 per share, which Cvent says is a premium of roughly 69 percent over the event management software firm's closing price on April 15.

The shareholder price is also 70 percent above Cvent's average closing price over the past 30 days.

At the announcement of the deal, Cvent share prices rocketed to $35.23, a surge of over 64 percent.

"We are pleased to announce this transaction that provides a significant premium for Cvent stockholders," said Reggie Aggarwal, founder and CEO of Cvent.

"This milestone is the next chapter in our 17-year history. With Vista's financial strength to invest in Cvent now and in the future, we will be better positioned to deliver innovative solutions that transform the meetings and events industry, and to offer employees new opportunities for career growth."

Vista Equity intends to transform Cvent into a private company on closing, however, the firm's headquarters will remain in Tysons Corner, VA.

Cvent's board has approved the deal and recommended that stockholders do the same. If approved, the buyout is expected to be completed by Q3 2016.

Morgan Stanley has acted as Cvent's financial advisor to bring about the acquisition.

In a statement, Brian Sheth, co-founder and president of Vista commented:

"Over the last several years, Vista has developed a leading portfolio of meeting technology providers. This acquisition is our most significant investment in this space."

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