Blackstone acquires Cvent in $4.6bn transaction

BY Fraser Tennant

In a transaction which takes the company private, event-software provider Cvent Holding Corp. is to be acquired by Blackstone for approximately $4.6bn.

Under the terms of the definitive agreement, Cvent stockholders will receive $8.50 per share in cash, representing a premium of 52 percent to the volume weighted average share price over the 90 days prior to 30 January 2023 – the day before media reports of a potential transaction were published.

Upon completion of the transaction – which involves Blackstone receiving a fully committed $1bn credit facility as part of its financing – Cvent’s common stock will no longer be publicly listed, and Cvent will become a privately held company.

Founded in 1999, Cvent’s comprehensive suite of technology solutions powers the entire event management process to maximise the impact of events. The company has approximately 22,000 customers globally in the corporate, non-profit, higher education and hospitality sectors.

“The continued events and travel recovery is one of Blackstone’s highest-conviction investment themes,” said David Schwartz, a senior managing director at Blackstone. “Given our extensive experience in the hospitality, events and real estate sectors, we believe Blackstone is well-positioned as a growth partner for this exceptional business.”

Following the recommendation of a special committee composed entirely of independent and disinterested directors, the Cvent board of directors unanimously approved the merger agreement.

“We are excited to share this announcement and look forward to our next chapter alongside the Blackstone team,” said Reggie Aggarwal, founder and chief executive of Cvent. “As one of the world’s largest private equity firms, Blackstone brings deep expertise in the event and hospitality industry, and with their backing, we plan to continue to invest in our business and deliver the innovative solutions that meet our customers’ needs and power the meetings and events ecosystem.”

The transaction is expected to close mid-year 2023, subject to the satisfaction of customary closing conditions, including receipt of approval by Cvent’s stockholders and required regulatory approvals.

Martin Brand, head of North America private equity and global co-head of technology investing at Blackstone, concluded: “Cvent is an industry leader, and we are excited to partner with their management team to continue the firm’s innovation and deliver world-class technology solutions to customers in the event and hospitality space.”

News: Events software provider Cvent accepts Blackstone's $4.6 bln deal

Permira raises €16.7bn Europe-focused fund

BY Richard Summerfield

Leading private equity firm Permira has announced the closing of its most recent flagship buyout fund, Permira VIII (P8), with total capital commitments of €16.7bn.

The fund saw strong demand from investors, closing above its target size of €15bn, which represents around a 50 percent increase in size compared to its predecessor, P7, which closed at €11bn in 2019.

The new fund has already deployed capital across four deals: Mimecast, Zendesk, Reorg and Acuity Knowledge Partners. According to Permira, the new fund will “aim to adhere to specific, fund-level targets relating to climate, gender diversity and governance”, which will be reported on annually throughout the fund’s lifecycle.

With a re-up rate of over 90 percent and over 50 new investors, P8 secured investment from a globally diversified base of leading international investors, including public and private pension funds, sovereign wealth funds, endowments and foundations, institutional fund managers and family offices of entrepreneurs.

“This fundraise is testament to the close relationships we have built with investors over nearly four decades, and an investment strategy that backs rapidly growing companies and highly resilient market leaders,” said Kurt Björklund, managing partner at Permira. “Across both P8 and PGO II, we now have committed capital of more than €20 billion to invest across both our buyout and growth equity strategies. I’d like to thank all of our investors for their continued and unwavering support."

“P8 comes at an exciting time, when we can continue to execute on our thematic, growth-focused investment strategy, whilst also applying it through the lens of values-based investing,” he continued. “We believe the four investments from P8 so far are a clear demonstration of this. We look forward to partnering with outstanding entrepreneurs and management teams to build the leading companies of tomorrow.”

The fund’s close follows the $4bn closing of Permira’s second growth equity fund, Permira Growth Opportunities II, in December 2021, which also beat its target of $2.5bn. The firm believes that the two funds will “enable Permira to invest flexibly across the most compelling investment opportunities globally, whilst leveraging the breadth of expertise available from Permira’s wide network and deep sector expertise”.

The firm has a strong track record of investing in businesses where technology is, or is expected to be, a significant part of their growth trajectory. As such, P8 is expected to see investments in the technology, consumer, healthcare and services sectors.

News: Permira raises €16.7bn for one of Europe’s biggest-ever buyout funds

CD&R acquires Focus Financial Partners in $7bn transaction

BY Fraser Tennant

In a deal that will take it private, fiduciary wealth management firm Focus Financial Partners Inc is to be acquired by affiliates of US private equity firm Clayton, Dubilier & Rice (CD&R) in an all-cash transaction valued at $7bn.

Under the terms of the agreement, Focus’ stockholders will receive $53 in cash per share, representing an approximately 36 percent premium to Focus' 60-day volume weighted average price as of the close on 1 February 2023.

“Focus represents an outstanding collection of leading registered investment advisers (RIAs) and business managers,” said David Winokur, a partner at CD&R. “Our investment is predicated on having greater financial and operating flexibility as a private company in order to support and drive collaboration amongst these entrepreneurial partners.”

Funds managed by Stone Point Capital LLC have agreed to retain a portion of their investment in Focus and provide new equity financing as part of the transaction.

“We are excited to be continuing the journey with the Focus partnership,” said Fayez Muhtadie, managing director of Stone Point. “We firmly believe in the secular tailwinds supporting the wealth management industry and that Focus, as a private company, will be even better positioned to capitalise and continue its track record of growth.”

The board of Focus has approved the proposed transaction on the recommendation of a special committee of all the independent directors of Focus.

“This transaction represents an important evolution in the resources we will have to invest, enabling us to increase the value we deliver to our partners and their clients,” said Rudy Adolf, founder and chief executive and chairman of Focus. “Our diverse and growing partnership creates enduring advantages and we are pleased to have reached an agreement with CD&R that delivers significant immediate cash value to Focus’ stockholders.”

Closing of the transaction – which is expected in the third quarter of 2023 – is subject to stockholder approval, regulatory approvals and other customary conditions.

Mr Adolf concluded: “We are uniquely positioned to capitalise on industry trends while offering the expertise and resources that help our partners provide differentiated service to their clients.”

News: CD&R to take Focus Financial private in over $7 bln deal

Duck Creek acquired by Vista in $2.6bn transaction

BY Fraser Tennant

In a deal that will see it become a privately held company, intelligent solutions provider Duck Creek Technologies is to be acquired by global investment firm Vista Equity Partners in an all-cash transaction valued at approximately $2.6bn.

Under the terms of the definitive agreement, Duck Creek shareholders will receive $19 per share in cash, which represents a 46 percent premium to Duck Creek’s closing stock price on 6 January 2023.

The merger agreement with Vista Equity Partners was approved following the recommendation of a special committee of the Duck Creek board of directors.

“This transaction is a testament to the value of the Duck Creek platform, the success of our strategy and the strength of our incredible team,” said Michael Jackowski, chief executive of Duck Creek. “Following a deliberate and thoughtful process, the board approved this transaction which delivers a great outcome for Duck Creek’s shareholders, providing them a certain and substantial cash value at an attractive premium.”

The deal terms of the merger agreement include a ‘go-shop’ period expiring 7 February 2023, which allows Duck Creek’s board of directors and its advisers to actively initiate, solicit and consider alternative acquisition proposals from third parties.

Founded in 2000 and headquartered in Boston, Duck Creek provides cloud-based property and casualty insurance solutions to its customers including Berkshire Hathaway Specialty Insurance and American International Group.

“Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today’s economy,” said Monti Saroya, senior managing director and co-head of Vista’s flagship fund. “Duck Creek’s modern cloud architecture and demonstrated market traction position it to define the next generation of mission-critical technology for P&C insurance.”

The transaction is expected to close in the second quarter of 2023, subject to the satisfaction of customary closing conditions, including approval by Duck Creek’s stockholders and US antitrust clearance.

“Vista has an established track record of partnering with leading enterprise software businesses within the insurance industry and related verticals,” concluded Jeff Wilson, managing director at Vista. “We are excited to work with the Duck Creek team as we look to build on their best-in-class platform and solutions, which serve many of the world’s leading P&C insurance carriers.”

News: Vista to take Duck Creek Technologies private in $2.6 bln deal

BC Partners to acquire Madison Logic from Clarion

BY Fraser Tennant

In a deal that underscores its deep expertise in technology enabled services and digital marketing, international investment company BC Partners is to acquire a majority stake in account-based marketing (ABM) platform Madison Logic from New York based private equity (PE) firm Clarion Capital Partners.

The terms of the deal have not been disclosed.

Established in 1986, BC Partners has played an active role for over three decades in developing the European buyout market. Since its foundation, BC Partners has completed over 124 PE investments in companies with a total enterprise value of over €160bn and is currently investing its eleventh PE buyout fund.

“Madison Logic embodies the key themes that we look for at BC Partners and within the technology sector,” said Raymond Svider, chairman of BC Partners. “It is an industry leader in a secularly growing market with multiple avenues for growth and a strong management team. The business is the ideal platform to invest in this attractive segment of the market.”

Moreover, BC Partners will support the ABM platform management team to continue to provide unsurpassed services, as well as accelerate its growth trajectory with access to additional capital to invest in the business and its technology to further drive organic and inorganic growth through increased technology platform functionality and service delivery. BC Partners will also expand capabilities in new industries, geographies and advertising mediums.

“Madison Logic has grown substantially and established its leadership position in the market,” said Tom O'Regan, chief executive of Madison Logic. “We are thrilled to now continue in the next stage of our very ambitious growth path, and confident that this will unlock significant new growth opportunities across the business.”

With the support of Clarion, Madison Logic has taken market share through rapid organic growth, driven by a highly targeted go-to-market strategy and investments in technology.

“The execution by the Madison Logic team has been nothing short of incredible as they have scaled the company to become a global leader in account based marketing," said David Ragins, a managing director at Clarion. “It has been a pleasure being part of such a great company and we wish the team continued success with their new partner.”

The transaction is subject to customary regulatory and antitrust approvals.

Mr Syider concluded: “Consistent with our ‘owner-operator’ mindset, we are excited to partner with Madison Logic to execute their strategy and support them in further developing their technology and services offerings.”

News: BC Partners to acquire account-based marketing firm Madison Logic