Blackbaud Up on MicroEdge Buy, Boosts Solutions Portfolio
Shares of Blackbaud Inc. (BLKB) rallied 2.3% following the company’s announcement of the acquisition of MicroEdge, LLC – a leading provider of mission-critical software solutions for the philanthropic giving community globally. The deal is valued at $160 million and is expected to close in the fourth quarter of 2014. Blackbaud intends to fund the deal with cash in hand and borrowings under its existing credit facility.
This acquisition will considerably expand Blackbaud’s offerings in the philanthropic giving sector with MicroEdge’s comprehensive technology solutions for grantmaking, corporate social responsibility and foundation management. Moreover, this takeover will help Blackbaud deliver innovation across its customer base and organizations that fund non-profit missions.
Based in Charleston, SC, Blackbaud provides cloud-based and on-premise software solutions and related services for non-profit organizations which include fundraising, eMarketing, advocacy, constituent relationship management (CRM), financial management, payment solutions, analytics, education solutions and vertical-specific solutions. Utilizing the Blackbaud technology, these organizations raise funds above $100 billion annually. Therefore, the acquisition of MicroEdge is strategic move by Blackbaud aimed at expanding its current line of operation to comprehensively serve foundation and corporate giving markets.
Further, the MicroEdge purchase creates significant opportunities for Blackbaud to offer customers new innovation and end-to-end solutions. Also, the buyout will help Blackbaud extend MicroEdge’s Corporate Social Responsibility offerings to companies, helping them maximize their philanthropic impact through improved administration, reporting, employee engagement and other capabilities.
Blackbaud currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the computer software sector include Aspen Technology Inc. (AZPN), ACI Worldwide. Inc (ACIW) and Callidus Software Inc (CALD). While AutobytelAspen sports a Zacks Rank #1 (Strong Buy), ACI and Callidus carry a Zacks Rank #2 (Buy).
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