Clearlake Submits Improved Buyout Offer for Blackbaud
April 16, 2024 at 06:25 am EDT
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US cloud software firm Blackbaud, Inc. (NasdaqGS:BLKB) on April 15, 2024 said its shareholder Clearlake Capital Group, L.P. has approached it with an improved buyout offer of USD 80 per share in cash, valuing the business at USD 4.13 billion (EUR 3.88 billion). The move comes after Blackbaud rejected an unsolicited USD 71 per share cash offer from the US private equity firm in March 2023, describing it as "highly unattractive." The new non-binding proposal was revealed in a letter sent to Blackbaud's board, according to a filing of the software firm with the US Securities and Exchange Commission, which also showed that Clearlake holds an 18.2% stake in the business. ?The company continues to face substantial operational challenges that require transformational change and investment over many years,?
Clearlake said in the letter, adding that Blackbaud can tackle the problems only as a private company "with the support of a strategic party or sponsor". In a separate statement, Blackbaud said it would examine the proposal in consultation with its independent financial and legal advisors, without elaborating further.
Blackbaud, Inc. is a cloud software and services provider. The Company enhances its software with a range of payment processing, analytic and business intelligence services, consulting, training, and professional services, as well as maintenance and technical support. Its specific solutions and services include fundraising and engagement, financial management, grant and award management, education solutions, social responsibility and ESG, payment services, data intelligence, professional and managed services, customer support, and training. Its fundraising and engagement solutions include Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud eTapestry, Blackbaud Luminate Online, Blackbaud TeamRaiser, JustGiving from Blackbaud, Blackbaud Fundraiser Performance Management, Blackbaud Altru, and Blackbaud Guided Fundraising. Its financial management services include Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management.