Blackbaud Announces Acquisition of Kintera
Excerpted from a Blackbaud press release:
CHARLESTON, S.C. — Blackbaud, a provider of software and related services designed specifically for nonprofit organizations, announced yesterday that it is acquiring Kintera, a provider of a Software as a Service (SaaS) solution to the nonprofit and government sectors. Under the terms of the agreement, Blackbaud will pay an all-cash purchase price of approximately $46 million. Blackbaud expects to finance the deal with cash and borrowings from its credit facility.
Kintera’s principal offering is its online Sphere® technology platform, which is used by such leading organizations as American Lung Association, Big Brothers Big Sisters of America, International Fund for Animal Welfare, Lance Armstrong Foundation and Sesame Workshop to manage online fundraising events and in 2007 processed more than $400 million in online gifts.
The company also offers wealth profiling and screening services as well as an accounting software solution, both similar to offerings of Blackbaud.
With approximately 4,000 customers, Kintera is recognized for the proven capabilities of its Sphere® SaaS offering that has allowed nonprofits to effectively grow their base of supporters and expand their online fundraising initiatives. The company reported $44.9 million in total revenue for 2007.
“The acquisition of Kintera is very exciting for us and for the nonprofit industry as a whole,” said Marc Chardon, Blackbaud’s president and chief executive officer. “The online solutions of the two companies have historically served different segments of the market, and this acquisition gives us the ability to broaden our addressable market with proven and rich online product functionality.”
Kintera will continue to be led by its current president and CEO, Richard LaBarbera, a high-tech industry veteran with more than 30 years experience working with software providers such as Sybase, Siemens/Nixdorf, Storage Technology and IBM. Kintera operations will continue to be directed from its existing offices in San Diego.
“Joining with Blackbaud gives us a way to leverage our capabilities with those of the industry leader and thus significantly improve the customer’s experience,” LaBarbera said. “We are very excited about the potential to offer more compelling solutions that enhance the donor experience and increase nonprofits’ abilities to raise more money.”
Blackbaud’s acquisition of Kintera is structured as an all-cash tender offer for all of the shares of Kintera at a price of $1.12 per share. The company is expected to formally launch the tender some time next week and close on or around July 2.
