Salem Radio Network News Tuesday, October 19, 2021

Science

Tech firm Cvent to return to public markets via $5.3 billion blank-check deal

(Reuters) -Event management software company Cvent will merge with a blank-check firm in a deal that gives it an enterprise value of $5.3 billion, returning to the public markets five years after it was taken private.

The deal with Dragoneer Growth Opportunities Corp. II announced on Friday included an investment from Zoom Video Communications Inc as part of a $475 million PIPE, or private investment in public equity, round.

Other investors in the PIPE round included Fidelity Management & Research Co, Ian Osborne’s Hedosophia and Oaktree Capital Management.

22-year-old Cvent provides event management software that is used by more than 200,000 users. It was taken private in 2016 by investment firm Vista Equity Partners in a $1.65 billion deal.

Companies that facilitate online meetings have flourished during the pandemic as restrictions on movement forced businesses to host events virtually.

McLean, Virginia-based Cvent said it expects the deal to deliver proceeds of $801 million, which it will use for product development and expansion of its offering.

SPACs like Dragoneer Growth use the pool of capital raised through their IPOs to merge with a private company and take it public, typically within two years of listing.

Dragoneer raised $276 million in its IPO in November.

After the deal closes, Cvent will be listed on Nasdaq under the ticker symbol “CVT”.

(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)

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