Vista Equity Partners Completes Acquisition of Cvent and
Announces Merger with Lanyon Solution
Enterprise Value: $1,413.64M
EV/LTM Revenue: 7.1x
EV/NTM Revenue: 6.1x
EV/LTM Revenue: 7.1x
EV/NTM Revenue: 6.1x
- Cvent, Inc. and Lanyon Solutions, Inc. are both cloud-based enterprise event and hospitality management companies
- The acquisition of Cvent was originally announced April 18, 2016 and was met with headwinds from DOJ anti-trust regulators, but eventually cleared
- The combined company will operate under the Cvent brand and will cover over 28,000 customers in 100 countries
High level of M&A activity in the Hospitality Software Space
- Traditional hospitality organizations looking to enhance the customer experience are investing heavily in each other and enterprise management systems in terms of data tracking, predictive analytics, events management, and process optimization
- Travel software providers have already begun consolidating a high level (ex. Expedia acquired Travelocity and Orbitz); we are beginning to see the same in the MICE segment (meetings, incentives, conferences, and exhibitions). This trend is expected to continue further across the hospitality software industry to include segments like client experience and marketing
- AccorHotels announced the acquisition of John Paul, a hospitality client experience software provider, in November 2016 at a $150M valuation, A 2017e EV/EBITDA multiple of 11x
- This is a high level of activity from both strategic and private equity investors in the space
Relevant Transactions
| Date | Buyer | Target | EV ($M) | EV/REV | EV/EBITDA | Notes |
|---|---|---|---|---|---|---|
| 11/16/16 | AccorHotels | John Paul | 150.00 | – | 11.0x | John Paul provides customer experience management solutions for hotels |
| 05/31/16 | Vista Equity Partners | Marketo | 1,700.43 | 7.5x | – | Marketo provides a cloud-based marketing software platform |
| 11/24/15 | Sabre Corp | Trust Group | 154.00 | – | – | Purchased from Battery Ventures, provides hotel marketing and reservation platforms |
| 11/05/15 | Constellation Software | Springer-Miller Systems | – | – | – | Springer-Miller provides property management systems for hotels, resorts, and spas |
| 06/01/15 | Mitel Networks | TigerTMS | 12.00 | 1.2x | – | TigerTMS provides cloud-based solutions for hotels |
| 06/23/14 | Oracle | MICROS Systems | 4,604.10 | 3.4x | 17.5x | MICROS provides enterprise applications and hardware for the hospitality and retail industries |
| 01/07/13 | Vista Equity Partners | Lanyon Solutions | – | – | – | Lanyon providers enterprise event and hospitality management solutions |
