How Cvent plans to use its $5.3 billion SPAC deal

Tech firm Cvent Inc recently announced that it would return to public markets via a $5.3 bln blank-check deal, the latest tech company to inject public markets with fresh capital.

Before the deal, Cvent was a private, venture-backed venture and the largest cloud-based event management software provider. Cvent plans to expand its product offerings in the event technology industry through this deal and strengthen its competitive market position.

Let us take a closer look at the details of this deal.

Overview of Cvent

Tech firm Cvent Inc on Thursday announced it will return to the public markets via a $5.3 billion special purpose acquisition company (SPAC) deal, one of the biggest-ever blank-check deals.

Cvent, founded in 1999 and based in Tysons Corner, Va., provides cloud-based event management software for businesses. It offers software solutions for event organizers that provide the most comprehensive digital tools to plan and execute meetings and events. Company products include web surveys, registration platforms, attendance tracking systems, lead retrieval services and mobile apps.

According to Reuters reports, the SPAC deal will inject much-needed cash into Cvent’s coffers following its sale to private equity firm Vista Equity Partners for $1.65 billion six years ago. The company has since gone through process transformations as it integrated BetterCloud’s SaaS platform in 2018 after completing its acquisition of Presence Technology in April 2019. Those changes will be accompanied by the additional cash infusion from the SPAC deal which includes $3 billion in primary proceeds this quarter with an additional $2.3 billion expected later this year at closing or within 45 days after closing.

Cvent said it forecasts growth of over 15% annually over three years due primarily to investment opportunities generated from its expected capital increase including expanding new solution offerings, developing sales channels and increasing product marketing campaigns internationally to reach a wider audience of customers while also allowing them more convenient options for creating best-in-class events all across North America and beyond.

Overview of SPAC Deal

Tech firm Cvent is set to return to public markets in a $5.3 billion Special Purpose Acquisition Company (SPAC) deal. SPACs are shell companies that raise money in an initial public offering (IPO) to join forces with an established company and list the combined entity on the stock exchange. Through this method of listing, companies can avoid some of the costs and regulatory hurdles associated with a traditional IPO, which is why it has become an increasingly popular path back to public markets in recent years.

Cvent’s SPAC deal combines its operations with United Wholesale Mortgage’s (UWM) blank-check firm TSG8 Acquisition Corp., founded to conduct a business combination transaction between UWM and Cvent. The combined entity is expected to have around $1 billion of cash at closing, after giving effect to the PIPE investment as part of the transaction. This translates into robust financial flexibility & runway for Cvent as it continues its mission to revolutionize meetings, events, & experiences through technology solutions.

The SPAC will also provide Cvent access to capital markets and permit its current shareholders continued ownership in a listed company – enabling them to exchange their shares for publicly-traded shares post close. It ultimately gives shareholders one clear price discovery process for liquidity purposes and permits broader investor access & market recognition for Cvent’s growth story.

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

The tech firm Cvent announced that it will return to the public markets via a $5.3 billion special purpose acquisition company (SPAC) deal. This news comes after a period of rapid growth for the company.

There are various reasons why Cvent decided to go this route, including access to public markets, strategic investments, and more. So let’s take a closer look at why this SPAC deal makes sense for the company.

Access to Capital

Access to capital is one of the key benefits for tech firm Cvent’s decision to return to public markets via a $5.3 billion blank-check deal. A special purpose acquisition company (SPAC) is a publicly traded shell company that raises money to acquire another company with its management team, assets and shareholders. This allows private companies such as Cvent that do not wish to pursue an initial public offering (IPO) to enter the public markets quickly and directly.

Additionally, this type of listing allows management teams more control over the listing terms, including information disclosed in the filing documents and controlling board composition, which is not always possible during an IPO process. Furthermore, while IPOs are usually accompanied by intense regulatory scrutiny and high costs associated with underwriter fees, a SPAC transaction is much more straightforward because it is deemed a merger between two entities rather than offering shares.

By utilizing a SPAC listing, Cvent will enjoy access to much needed capital while taking advantage of many benefits of being publicly traded without all the added complexities associated with other routes such as an IPO.

Improved Liquidity

One major advantage of the blank-check deal for Cvent is increased liquidity for its stocks. The SPAC deal allows the technology firm to avoid going through the standard IPO process and immediately access a publicly traded currency. This means that Cvent’s existing shareholders can monetize their original investment immediately. Additionally, thanks to this blank-check offering, those who want to enter into the company earlier in its growth can do so now. Increased liquidity means that there will be more invested in Cvent and more opportunities for investors to enjoy its value growth.

The advantages of Cvent rejoining public markets via a SPAC deal extend beyond improved liquidity for investors. As part of its transaction, the technology firm could receive an influx of capital upwards of $2 billion from MVC founders, Michael Mona Jr., John Khoury and Adam Thevar as well as select New York-based institutional investors—allowing it larger space with which to invest in product differentiation and pioneering customer services in order keep up with tech industry trends and better compete within the events industry space.

Increased Visibility

With a blank-check deal, technology firm Cvent is poised to return to public markets, gain increased visibility, and exchange liquidity. Cvent has announced its merger with Invest Hospitality Acquisition Corp. (IPV), which is sponsored by Invest Hospitality Ltd., a blank-check company sponsored by Investcorp. The SPAC transaction values Cvent at approximately $5.3 billion and will provide Cvent with roughly $962 million in gross proceeds.

Generally, the IPO process requires companies to go through a strenuous regulatory process that can be time consuming and costly; however, by going public this way, Cvent can save money and increase liquidity for current shareholders immediately, making it an attractive option for the company.

Completing the merger will bring greater visibility for Cvent as it shares financial results with Wall Street analysts via quarterly earnings reports – something not available before becoming a publicly traded company again. This heightened visibility should help expand the Cvent brand across multiple industries such as hospitality, corporate event planning, weddings, attractions, among others from customers worldwide due to increased focus from investors on its progress in these sectors.

They are also expected to implement effective marketing strategies to spread awareness of their products and services within various industries under their umbrella which could fuel further growth in their stock price once they debut on the public exchanges.

What the SPAC Deal Means for Cvent

Cvent, a tech firm, recently announced its intention to return to the public markets via a $5.3 billion blank-check deal with the SPAC (Special Purpose Acquisition Company).

This SPAC deal is the first of its kind for Cvent and has many benefits. This article will explore what the SPAC deal means for Cvent and how it plans to use it to its advantage.

Increased Financial Flexibility

Cvent’s $5.3 billion SPAC deal will provide the tech firm with additional financial flexibility and resources as they return to public markets. The deal, which closed on April 15, 2021, has been described by Cvent’s CEO Chuck Ghoorah as a “re-IPO” for the company that will “strengthen the foundation” for continued growth and deliver long-term value.

The funds acquired through this SPAC agreement will enable Cvent to repurchase shareholder shares and accelerate product innovation investment while reducing debt. With a more liquid balance sheet, the company will be better positioned to capitalize on potential M&A opportunities to further deepen its presence in the event technology market. In addition, Cvent will now be able to provide employees with increased stock compensation opportunities.

Going forward, increased financial flexibility means that Cvent can concentrate on focused efforts that create long-term value and deliver improved customer experiences for virtual and in-person events.

Ability to Pursue Growth Opportunities

The $5.3 billion Special Purpose Acquisition Company (SPAC) deal will enable Cvent, a tech firm, to return to public markets and position the company for accelerated growth opportunities. As part of the deal, Cvent will also receive $2.6 billion in cash proceeds which will be used to capitalize and energize the business to focus on growth opportunities.

The SPAC deal provides Cvent with access to a new equity base that allows them to seize potential organic and inorganic growth options. This includes using new financial resources to enhance its core platform, invest in adjacent technology segments, deliver more products across the hotel event industry, expand its Global Online Marketplace offering, acquire complementary businesses or technologies which can fuel additional growth and partner with other technology companies to bolster their long-term success and robustness.

Moreover, since Cvent is no longer classified as a privately held company but rather a publicly traded company, this opens up possibilities for brand marketing globally for acquisitions that can strengthen their position within the market. The increased availability of equity financing also paves way for potential Employees Stock Option Plans that can fuel innovation and broaden share ownership amongst employees as they return into public markets through this SPAC deal.

Expansion of Product Offerings

Cvent’s $5.3 billion deal with IGT Capital Acquisition Corp, a special purpose acquisition company (SPAC), is set to bring the tech firm back to public markets and provide Cvent with a means to expand their offerings. With access to additional capital, the firm will more firmly entrench itself in the events technology industry by gaining new resources and customers in order to continue growing their cloud-based enterprise software solutions.

The SPAC will enable Cvent to pursue growth and development opportunities by adding product lines or expanding existing offerings such as event management, venue selection, marketing automation, customer analytics, etc. By increasing its product portfolio and additions like an event marketplace, corporate travel platform, virtual events marketplace and a small event space solution for smaller meeting planners, Cvent can leverage its current customer base for greater efficiency and revenue opportunities.

In addition to pursuing strategic acquisitions that could enhance their product suite or presence in new markets worldwide, Cvent can also explore merging with other technology firms within related industries like hospitality or travel & tourism with this capital injection. Their offering of products has become even more attractive compared to competitors in the space who may be relying solely on one or two of these solutions while running a separate entity for another solution set. This move helps Cvent stay competitively priced as they extend their solutions both up-market into more complex solutions (for large corporations), mid-market (focusing on medium businesses) and down-market (helping small businesses build conference registrations).

Impact on Cvent’s Shareholders

Tech firm Cvent’s decision to return to public markets via a $5.3 billion deal with a special purpose acquisition company (SPAC) has been met with widespread approval from shareholders. This influx of capital has the potential to benefit current and future shareholders in a variety of ways.

In this article, we will explore the impact of this major move on Cvent’s shareholders.

Potential for Higher Returns

The announcement of Cvent’s proposed $5.3 billion merger with ICR Acquiror, a special purpose acquisition company (SPAC), has left many shareholders wondering what this deal could mean for them. By returning to public markets, the tech firm hopes to create value for its existing shareholders by increasing its exposure and allowing for higher returns on investment.

The terms of the deal include a $1.6 billion private placement from ICR Acquisition Corporation’s Class B Shares to be exchanged for 60.7 million units of Cvent at an implied price per unit at $26.2488, resulting in an estimated enterprise value of $5.3 billion upon completion of the transaction. This move is expected to deliver significant upside potential and return capital to shareholders, while creating an even more comprehensive portfolio offering and heightened focus on innovation within the events and hospitality technology space.

The transaction is expected to close in 2021. It will result in a dramatic shift in their ownership structure as current shareholders will own 21 percent of the company upon completion, compared to 75 percent before the merger. Additionally, by utilizing a SPAC structure, Cvent aims to gain access to public markets through an accelerated timeline and simplified process compared to traditional public offerings or direct listings, which could enable it to achieve growth objectives that have previously been out of reach. Ultimately this shift back into public markets is expected to bring superior returns for existing investors by allowing them access liquidity and providing better visibility into future performance — all while raising significant resources towards continued long-term growth opportunities in enterprise software across global markets.

Increased Dividend Potential

With Cvent’s recent $5.3 billion SPAC deal, the technology firm is set to return to the public markets. For investors, this presents an opportunity for increased dividend potential in their Cvent shares. In addition, with the influx of capital from this agreement, Cvent has plans to use it to finance new investments and expand its operations globally. The company’s board of directors points out that these strategic initiatives will open up opportunities for improved shareholder returns and could eventually translate into a higher dividend.

In addition, as one of the leading event management platforms, Cvent plans to strengthen its market presence across multiple industries by investing in innovative technologies and applications that can help customers better navigate today’s increasingly complex meeting management environment. As a result, this merger could potentially increase the company’s revenue growth rate and its ability to reward shareholders through a higher dividend.

The announcement of this SPAC deal has garnered a strong response from current shareholders who are eager to benefit from increased dividend potential that comes with being publicly traded again. In addition, shareholders have expressed optimism about what lies ahead for Cvent and will likely be pleased with increased investment returns.

Improved Shareholder Value

The tech firm Cvent will take the $5.3 billion special purpose acquisition company (SPAC) deal to return to the public markets. This deal will bring improved shareholder value and expand upon a strong growth path. The increased use of SPACs as an alternative approach to going public has provoked much interest from investors and entrepreneurs.

The SPAC agreement allows Cvent’s shareholders to receive cash consideration for their shares, providing liquidity for those who have been invested in the company since its origin in 1998. After the completion of the transaction, current Cvent shareholders are expected to own approximately 50% of the fully diluted share count. Additionally, this is anticipated to result in stronger operating margins, financial performance, and improved market positioning within the cloud-software provider industry.

With reduced costs, expanded scale and increased access to capital markets, Cvent is expected to become a larger force in the sector and a more attractive investment for current and future shareholders.

Conclusion

Tech firm Cvent is set to return to public markets after a 9-year absence, through a $5.3 billion special purpose acquisition company (SPAC) deal.

The company plans to leverage its public listing to further enhance its event management platform, which it hopes will help it gain a competitive edge in the market.

This article has discussed the benefits of this deal for Cvent, and its implications for the technology industry. It has also outlined what investors should expect from the tech firm’s return to public markets.

Summary of Cvent’s SPAC Deal

Cvent, Inc., the software and technology firm specializing in event management solutions, recently announced plans to return to public markets through a special purpose acquisition company (SPAC) deal worth $5.3 billion. Through this agreement, Cvent can raise additional capital while providing its shareholders a liquidity event and taking the company off the private market.

The SPAC deal allows Cvent’s current shareholders to retain a majority stake in the company while allowing new investors to get involved in Cvent’s growth story. The deal increases Cvent’s value by over $3 billion compared to its last round of funding. In addition, it allows the company access immediate capital and estimated future investment based on gross revenue generated from services provided. The ultimate goal for Cvent is to become the leading provider of comprehensive event planning and virtual events platform that is best used for virtual meetings or conventions, in-person meetings or conventions, and hybrid meetings or conventions utilizing both approaches simultaneously.

This agreement continues Cvent’s long journey of becoming one of the most successful tech companies of our time. This latest move aims to revolutionize how businesses plan their events to reach new heights without sacrificing customer experience or satisfaction levels. This marks an important milestone for Cvent as it looks ahead at building on its great success since entering into private markets over a decade ago.

Impact on Cvent’s Future

The successful completion of the $5.3 billion merger will enable Tech firm Cvent to return to public markets and attract new sources of capital, allowing it the freedom and flexibility to invest in innovative technologies, accelerate growth and expand its customer base. In addition, with a SPAC deal, there’s no need to make a traditional initial public offering (IPO) or rely on venture capital firms for external funding.

For almost 20 years, Cvent has provided event management software solutions helping businesses make their events smarter and more efficient. With this more direct route back into the public market, the business can potentially raise additional funding to fuel its accelerated growth opportunities, product development initiatives, operational efficiencies, and focus on customer service maintenance.

The SPAC deal will also likely impact Cvent’s sales efforts and forging potential strategic partnerships with investors seeking an industry leader with a long track record of success in technology-enabled event management solutions. Additionally, as a private and public company, Tech firm Cvent will have access to new potential partners that may strengthen its relationships across many industries including hospitality, travel and events.

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Steven Schuster

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