MicroEdge Enters Into Agreement Of Sale With Blackbaud, Inc.
Acquisition connects giving and nonprofit communities to enable greater efficiency, collaboration and social impact
New York, NY, September 2, 2014 – MicroEdge LLC, the leading provider of technology solutions for the charitable giving community, today announced it has entered into an agreement to be acquired by Blackbaud, Inc. (Nasdaq: BLKB), a leading global provider of software and services for nonprofits. This acquisition unites MicroEdge’s comprehensive technology solutions for grantmaking, corporate social responsibility and foundation management with Blackbaud’s portfolio of software and services for nonprofits, and uniquely positions the combined companies to serve the entire spectrum of the philanthropic sector.
Under the purchase agreement for the transaction, Blackbaud will acquire all of the outstanding equity interests of MicroEdge for an aggregate purchase price of $160 million. The closing of the transaction is expected to occur in the fourth quarter of 2014, subject to customary closing conditions, including the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended. Blackbaud expects to finance the acquisition with cash on hand and borrowings under its existing credit facility.
"We’re enthusiastic about the potential for our clients and our team as we join Blackbaud,” said MicroEdge CEO Kristin Nimsger. “Blackbaud has a rich heritage of technology leadership in the nonprofit sector, and MicroEdge is a leading provider of software solutions for foundations in the charitable giving community. No two companies are better positioned to connect these segments of the market together. This collaboration will significantly improve efficiency and accelerate our goal of helping our mutual clients effectively measure the outcomes of their work."
MicroEdge’s suite of products delivers a powerful, integrated and open framework for efficient and effective charitable giving. The company provides innovative solutions that help thousands of organizations raise, invest, manage, and award charitable currency.
For more than 30 years, Blackbaud has provided the nonprofit and education sectors with innovative technology and expertise to help them achieve their missions. The company services more than 30,000 customers in 60 countries with comprehensive solutions for fundraising, eMarketing, advocacy, constituent relationship management (CRM), financial management, payment solutions, analytics, and vertical-specific solutions. Using Blackbaud technology, clients raise over $100 billion each year.
“We’re pleased to bring MicroEdge’s innovative solution set into the Blackbaud portfolio of offerings,” said Blackbaud president and CEO, Mike Gianoni. “Combining our 33 years of research and development with MicroEdge’s deep experience in these unique markets will position Blackbaud to expand its total addressable market, while offering an unprecedented set of technology solutions to address the needs of funders, nonprofits and corporations.”
“This acquisition creates a tremendous opportunity for Blackbaud to offer more customers new innovation and end-to-end solutions to meet their needs,” said Joe Moye, president of Blackbaud’s Enterprise Business Unit. “In addition to partnering with new charitable foundation customers, we also intend to extend MicroEdge’s Corporate Social Responsibility offerings to help companies maximize their philanthropic impact through cutting edge administration, reporting, employee engagement, and other capabilities.”
MicroEdge is a portfolio company of Vista Equity Partners and Bregal Sagemount. Harris Williams & Co. and Kirkland & Ellis served as the advisors to MicroEdge, and Evercore and Davis Polk served as the advisors to Blackbaud.
“MicroEdge’s leadership team has done a fantastic job over the past five years driving product innovation, maintaining strong customer loyalty and creating a broader vision for how technology can benefit the giving community,” said Alan Cline, principal at Vista Equity Partners. “Blackbaud is an excellent home for this business given their adjacent market positions within the giving and nonprofit communities, and I anticipate an acceleration of MicroEdge’s strategic vision as a result.”
MicroEdge is headquartered in New York. Blackbaud is headquartered in Charleston, South Carolina, with operations around the globe. To review Frequently Asked Questions regarding the acquisition, please visit the MicroEdge website at www.microedge.com/Blackbaud.
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. To learn more about MicroEdge, visit www.microedge.com.
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 Vista Equity Partners Vista Equity Partners, a U.S.-based private equity firm with offices in Austin, Chicago and San Francisco, with approximately $13 billion in cumulative capital commitments, currently invests in dynamic, successful technology-based 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.
MicroEdge is a trademark and/or service mark of MicroEdge, LLC. AngelPoints, GIFTS, GIFTS Alta, GIFTS Alta Blueprint, and GIFTS Online are trademarks of MicroEdge, LLC. All other company names or marks mentioned herein are those of their respective owners.