Image source: Cvent.
What happened
Shares of Cvent Inc (CVT +0.00%) jumped nearly 17% today on news that an already agreed upon buyout offer has now been approved by the Department of Justice (DOJ).
So what
According to the NewYork Post, a deal with Vista Equity Partners for an all-cash buyout was approved by the DOJ. The offer, announced in April, is for $1.65 billion and will reward shareholders with $36 a share. Now that the market is confident that the deal will go through, the stock closed today at $35.72. Shares had been trading for nearly $36 until the DOJ announced in July that it was reassessing the deal for any antitrust issues because Vista also owns one of Cvent's largest rivals.
Now what
This is good news for shareholders that the deal is almost certain to go through. However, while the article from the New York Post looks promising, there has been no official word from Cvent.
If you have a small position and don't mind losing $0.28 per share, you might sell now and avoid the risk that something may still fall through. If the merger doesn't happen, shares are likely to give up today's gain. However, assuming the DOJ really did give a nod of approval, the buyout is likely to be completed within a few weeks.
