Cvent Acquires Seed Labs for $4.2 Million
It's Cvent's first deal, drawn from a recent $136 million equity round.
Cvent, an event management software firm, has acquired Seed Labs, a consumer and social event mobile application developer, the companies announced Wednesday. The purchase price of $4.2 million is being drawn from $136 million that Cvent has raised from private equity investors led by New Enterprise Associates and Insight Venture Partners, and marks Cvent’s first acquisition since its founding 13 years ago.
While Cvent itself is a technology company, it did not have the in-house expertise to develop mobile applications, Reggie Aggarwal, Cvent’s founder and CEO, tells Folio:’s sister publication EXPO. “We selected Seed Labs after reviewing at least 20 solutions and hearing their name continuously come up in conversations with our clients and prospects,” Aggarwal says.
Cvent became particularly interested in Seed Labs as it became apparent that the acquisition would expand its customer base into the consumer market, Aggarwal says. Cvent clients include Meeting Professionals International, Marriott and Yahoo!, while Seed Labs has developed information-intensive apps for such high-profile clients as ESPN’s X Games, the Kentucky Derby and the County Music Association’s CMA Music Festival.
The app for the X Games, for instance, provides attendees with real-time scores, while the Kentucky Derby app gives attendees background information on each horse and jockey. Seed Labs’ mobile apps work on all major mobile devices, including iPhone, iPad, Android and BlackBerry.
“We would never be able to build custom apps like the ones Seed Labs provide this quickly,” Aggarwal tells EXPO. “We also wanted their DNA. As a company grows, oftentimes it can lose its start-up mentality. Cvent has done a pretty amazing job keeping its culture, but by reinforcing it with the Seed Labs team—we can continue to innovate and succeed.”
Seed Labs CEO Todd Rogers says the partnership will afford his clients “a complete spectrum of coordinated services under one roof to increase the appeal, excitement and value of their events.”