Update, Nov. 18, 10 a.m. Eastern: Cvent confirmed that the U.S. Department of Justice has cleared Vista Equity Partners' acquisition of Cvent. The $1.65 billion deal will close by Nov. 29, according to Cvent.
A sudden and steep rise in Cvent's stock price at midday on Thursday suggests someone out there has reason to believe the value of the company has
risen. Clearance from the U.S. Department of Justice for Vista Equity Partners'
planned acquisition of Cvent to move forward, perhaps?
Cvent stock opened the day on Thursday at $30.63 per share
on the New York Stock Exchange. It began climbing a steep cliff at 12:40 p.m. Eastern
and in 15 minutes reached $34.87. The stock closed at $35.72, a 16.62 percent
increase on the day.
The movement prompted StreetInsider.com to place the CVT
stock on its Unusual 11 Mid-Day Movers 11/17 report, which went out at 1:19
p.m.
So what prompted the move? CNA Finance reported, "In a
court ruling that was released today, Vista Equity Partners won approval to
close the merger with Cvent." And the New
York Post reported that the DOJ had decided not to block the deal. The
history there is that the DOJ requested more time to review the deal and Vista
Equity declined, betting that the DOJ would not sue Vista Equity to gain that
extra time but rather would clear the deal and move on. A Nov. 3 New York Post article framed Vista's
gambit as playing a game of chicken with the DOJ.
Meanwhile, there could be a chicken-or-the-egg scenario
going on with Thursday's dramatic increase in Cvent stock value. The New York Post article seems to have gone
live around the same time Cvent's stock started rising, so the market activity
may have been a reaction to the Post
article. BTN has not been able to
confirm a DOJ decision or approval on Vista Equity's acquisition of Cvent.
Regardless, Thursday's stock jump indicates the
excitement in the market for a Vista Equity/Cvent merger, which is expected to
close at $36 per share on Nov.
22. Vista Equity owns Cvent competitor Lanyon and recently acquired
marketing automation firm Marketo. Put all these things together and Vista will
own an end-to-end family of meetings management, meetings engagement data and
marketing companies: meetings tech companies Cvent and Lanyon, meetings apps
via Lanyon's GenieMobile and Cvent's CrowdCompass, and marketing automation
through Marketo. DoubleDutch has chased a similar
platform, though via partnerships rather than common ownership.