Why Shares of Cvent Inc. Are Surging

Image source: Cvent.

What happened

Shares of Cvent Inc (NYSE: CVT)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.

10 stocks we like better than Cvent When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Cvent wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of November 7, 2016

Seth McNew has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.