Many public companies have invested in SPAC deals via the PIPE financing. The latest could be Zoom Video Communications Inc ZM in a move to boost its live events strategy.
What Happened: Earlier this week, the Wall Street Journal reported event management company Cvent was in talks to go public in a SPAC deal valuing the company at $5 billion.
Dragoneer Growth Opportunities Corp II DGNS is in talks to bring Cvent public. Cvent is owned by Vista Equity Partners, who took the company private in a $1.65-billion deal in 2016.
Zoom Video Communications is in talks to acquire 10% of Cvent via the PIPE financing, according to a report from Bloomberg.
Why It’s Important: Cvent has integration with Zoom already and promotes the company on its website.
“With Zoom, easily reach audiences where they are to deliver your message anywhere in the world,” the Cvent website reads.
Cvent says that Zoom integration allows virtual meeting and webinars to be managed by the company.
Prior to the pandemic, Cvent focused 100% on live, in-person events. The company has shifted to a mix of live in-person events and virtual events. Virtual event revenue comprises more than $100 million of the company’s $500-million annual total, according to Bloomberg.
Zoom has been pushing further into live events with the announcement of its Zoom Events Wednesday to host and manage virtual events.
The move by Zoom to acquire a stake could be to further the relationship between the two companies and also possibly to offer some exclusives for people who use both event platforms.
Zoom is also diversifying outside of its video platform with a $14.7-billion announced merger of call-center management company Five9 Inc FIVN.
Price Action: DGNS shares are up 1.4% to $9.99 Thursday morning.
ZM shares are up 1% to $355.
Photo: a Zoom call.
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