Dragoneer to take event technology provider Cvent public in $5.3bn deal
Cvent, an enterprise event technology provider, is set to go public through a $5.3 billion merger deal with Dragoneer Growth Opportunities Corp. II, a special purpose acquisition company (SPAC).
The Virginia-based Cvent provides events, meetings, and hospitality technology to over 200,000 users around the world. Established in 1999, the company has approximately 4,000 employees.
Cvent provides an event marketing and management platform and has a global marketplace to allow event professionals to collaborate with venues for creating experiences that are engaging as well as impactful.
Its event marketing and management platform provides software solutions to event organizers and marketers. The solutions are used for online registration for events, selection of venues, marketing and management of events, virtual and onsite solutions, and engaging with attendees.
Amid the global Covid-19 pandemic, Cvent has been offering a cloud-based platform for organizations that has an all-in-one solution for driving live engagement across all types of events.
On the other hand, Dragoneer Growth Opportunities Corp. II is sponsored by an affiliate of Dragoneer Investment Group. It is currently listed on Nasdaq.
Post-merger, the combined company will be named — Cvent Holding Corp., which will trade under the ticker symbol of CVT.
Reggie Aggarwal — Cvent CEO and Founder said: “The meetings and events industry has experienced rapid digital transformation over the last 18 months, with the pandemic creating a new paradigm for the events industry. Events became digitized through virtual and online experiences, and we invested heavily in expanding our virtual event capabilities.
“Now, we are engaging in a hybrid world, as in-person events resume, and virtual events remain prominent. With the increased digitization of our industry, events are ‘always on’ and have fewer boundaries.”
The deal will give Cvent cash proceeds of $801 million to help it speed up product innovation, ramp up research and development, cut down debt, and expand go-to market activities for capitalizing its position in the market for physical, virtual, and hybrid events.
The post-merger cash proceeds include nearly $276 million held in the trust account of Dragoneer Growth Opportunities Corp. II and the $50 million forward purchase agreement commitment made by Dragoneer funds.
Also backing the deal is a $475 million private investment in public equity (PIPE) with participation from Fidelity Management & Research, Oaktree Capital Management, Hedosophia, and Zoom Video Communications among others.
Marc Stad — Dragoneer Growth Opportunities Corp. II Founder and Managing Partner said: “We are excited to lock arms with Cvent and help position the business for its next phase of growth as a publicly listed company. In H2’20, Cvent launched its virtual events solution, and ever since, this virtual product line has been growing rapidly and has been well-received by customers.
“As the world reopens, we expect to move into a hybrid world that combines elements of in-person and virtual events. With the optionality, flexibility and reach that Cvent can provide, we expect organizations to increasingly turn to Cvent to expand their audiences and create new, user-friendly ways for both virtual and in-person participants to interact with their events.”
The deal is likely to close in Q4 2021, subject to the approval of the SPAC’s shareholders and certain other customary conditions.