Blackbaud Acquires EVERFI in Cash-Stock Deal Worth $750M

Blackbaud (BLKB) disclosed that it has acquired EVERFI in a cash and stock transaction worth about $750 million. Blackbaud engages in the provision of cloud-based and on-premises software solutions and related services for the global philanthropic community.

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EVERFI is an international technology company driving social change through education to address challenges in society.

Agreement Terms

Shareholders of EVERFI have agreed to receive $450 million in cash and 3,844,423 shares of the company’s common stock, valued at approximately $300 million. Blackbaud financed the cash portion of the deal with cash in hand and new borrowing under its credit facilities.

Blackbaud expects pro forma net leverage at closing to be about 3.4x and anticipates rapid deleveraging driven by strong free cash flow. Notably, EVERFI’s executive team and CEO Tom Davidson will be joining Blackbaud.

Deal Advantages

With this deal, Blackbaud will bolster the technology and data-driven impact space, benefiting companies committed to social impact.

Furthermore, the buyout will strengthen Blackbaud’s presence in the ESG and CSR spaces. Also, it doubles Blackbaud’s total addressable market to more than $20 billion and presents a substantial cross-sell opportunity with YourCause from Blackbaud.

Blackbaud expects the acquisition to be immediately accretive to its revenue growth profile, adding about $120 million in 2022 revenue.

Executive Comments

Blackbaud’s President and CEO, Mike Gianoni, said, “As companies continue to invest further in ESG and CSR programs to both give back and meet regulatory demands, they need a partner who can help connect their philanthropic goals to meaningful social impact opportunities. Blackbaud and EVERFI will work together to realize a shared vision of measurable social impact through world-class technology.”

Tom Davidson, the CEO of EVERFI, said, “Together we offer an unparalleled commitment to customers, innovation and data-driven social impact, making us the one distinctive leader in the social impact space. EVERFI’s software powers some of the largest ESG and CSR initiatives in the world, and this alignment will drive impact for millions of learners every year.”

Wall Street’s Take

Consensus among analysts is a Hold based on 4 unanimous Holds. The Blackbaud stock projections stand at $82.50 and implies upside potential of 3.9% to current levels. Shares of the company have gained 36.7% over the past year.

Negative Sentiments

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Blackbaud with 2.3% of investors on TipRanks decreasing their exposure to BLKB stock over the past 30 days.

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