Acquisition expands company’s solution portfolio to comprehensively
serve the philanthropic market
CHARLESTON, S.C.--(BUSINESS WIRE)--Oct. 2, 2014--
Blackbaud, Inc. (NASDAQ: BLKB),
a leading global provider of software and services for nonprofits, today
announced it has completed the acquisition of MicroEdge, LLC, an
innovative provider of high-performance solutions that enable the
worldwide giving community to organize, simplify and measure their acts
of charitable giving.
Blackbaud purchased all of the outstanding equity interests of MicroEdge
for an aggregate purchase price of $160 million, and financed the deal
with cash on hand and borrowings under its existing credit facility.
“The addition of the cloud-based MicroEdge solution line to Blackbaud’s
portfolio creates opportunity—like no other technology partner can
provide—for customers to experience comprehensive, end-to-end solutions
that not only serve, but connect funders, nonprofits and corporations,”
said Blackbaud President and CEO Mike Gianoni. “For investors, we’re
enthusiastic that this acquisition expands our total addressable market
by over $600 million into the rapidly growing, worldwide philanthropic
giving sector.”
The MicroEdge business will align with Blackbaud’s Enterprise Business
Unit with operations continuing out of New York, Minnesota and other
regional offices throughout the United States. Kris Nimsger, MicroEdge’s
former CEO, will lead Blackbaud’s Foundation and Corporate Markets Group
reporting to Joe Moye, president of Blackbaud’s Enterprise Business
Unit. “I am extremely excited about the future for MicroEdge and for our
clients as we join Blackbaud,” said former MicroEdge CEO Kristin
Nimsger. “Our organizations are very well aligned with regard to our
respective missions and cultures, and the combined new business is
uniquely positioned to lead the philanthropic sector forward with
innovative solutions, unparalleled insights, and a new level of
transparency and visibility into the effectiveness of grantmaking and
corporate social responsibility.”
Blackbaud will increase investment in and extend MicroEdge’s current
technology solutions for grantmaking, corporate social responsibility
and foundation management. The company also intends to embark on new
research and development to provide connected solutions across the
entire philanthropic spectrum while innovating in key areas, including
outcomes-based reporting, employee engagement, corporate social
responsibility and more. “We’re most excited because, as a result of
this acquisition, Blackbaud and MicroEdge are now able to harness the
power of our combined capabilities in order to provide significant new
value to our customers and the philanthropic marketplace,” said Joe
Moye, president of Blackbaud’s Enterprise Business Unit.
Established in 1985, MicroEdge was a portfolio company of Vista Equity
Partners and Bregal Sagemount prior to this acquisition.
About Blackbaud
Serving the nonprofit and education sectors for more than 30 years,
Blackbaud (NASDAQ:BLKB) combines technology and expertise to help
organizations achieve their missions. Blackbaud works with more than
30,000 customers in over 60 countries that support higher education,
healthcare, human services, arts and culture, faith, the environment,
private K12 education, animal welfare and other charitable causes. The
company offers a full spectrum of cloud-based and on-premise software
solutions and related services for organizations of all sizes including: fundraising,
eMarketing,
advocacy,
constituent
relationship management (CRM), financial
management, payment
solutions, analytics,
education
solutions, and vertical-specific solutions. Using Blackbaud
technology, these organizations raise more than $100 billion each year.
Recognized as a top company by Forbes, InformationWeek, and Software
Magazine and honored by Best Places to Work, Blackbaud is headquartered
in Charleston, South Carolina and has operations in the United States,
Australia, Canada, the Netherlands, Ireland and the United Kingdom. For
more information, visit www.blackbaud.com.
About MicroEdge
Established in 1985, MicroEdge, LLC, is the leading provider of software
and services to the giving community worldwide. MicroEdge solutions
deliver a powerful, integrated, and open framework for efficient and
effective charitable giving. The company is committed to providing the
best technology toolset for foundations, corporations, government
agencies, donors, advisors and financial institutions. Together, these
tools help organizations to work with one another to raise, invest,
manage and award charitable currency. MicroEdge is headquartered in New
York City with regional offices throughout the U.S. and supports
thousands of clients worldwide. MicroEdge is part of the Vista Equity
Partners portfolio of software and technology-enabled companies. To
learn more about MicroEdge, visit www.microedge.com.
About Vista Equity Partners
Vista Equity Partners, a U.S.-based private equity firm with offices in
Austin, Chicago and San Francisco, with over $13.5 billion in cumulative
capital commitments, currently invests in dynamic, successful software,
data and technology-enabled organizations led by world-class management
teams with long-term perspective. Vista is a value-added investor,
contributing professional expertise and multi-level support towards
companies realizing their full potential. Vista’s investment approach is
anchored by a sizable long-term capital base, experience in structuring
technology-oriented transactions, and proven management techniques that
yield flexibility and opportunity in private equity investing. For more
information, please visit www.vistaequitypartners.com.
About Bregal Sagemount
Bregal Sagemount is a growth-focused private equity fund with $500
million in committed capital. Bregal Sagemount makes investments of $15
million to $150 million in market leaders in high growth segments. For
more information, please see www.bregalsagemount.com.
Forward-looking Statements
This news release contains forward looking statements that involve a
number of risks and uncertainties, as well as the expected benefits of
the acquisition to Blackbaud. Although Blackbaud attempts to be accurate
in making these forward-looking statements, it is possible that future
circumstances might differ from the assumptions on which such statements
are based. In addition, other important factors that could cause results
to differ materially include the following: general economic risks;
uncertainty regarding increased business and renewals from existing
customers; continued success in sales growth; management of integration
of acquired companies and other risks associated with acquisitions;
risks associated with successful implementation of multiple integrated
software products; the ability to attract and retain key personnel;
risks related to our dividend policy and share repurchase program,
including potential limitations on our ability to grow and the
possibility that we might discontinue payment of dividends; risks
relating to restrictions imposed by the credit facility; risks
associated with management of growth; lengthy sales and implementation
cycles, particularly in larger organization; technological changes that
make our products and services less competitive; and the other risk
factors set forth from time to time in the SEC filings for Blackbaud,
copies of which are available free of charge at the SEC’s website at www.sec.gov
or upon request from Blackbaud's investor relations department. All
Blackbaud product names appearing herein are trademarks or registered
trademarks of Blackbaud, Inc.
Source: Blackbaud, Inc.
Blackbaud, Inc.
Nicole McGougan, 843-654-3307
media@blackbaud.com
or
MicroEdge,
LLC
Kathy Krais, 646-237-3966
kkrais@microedge.com