Why Blackbaud Shares Are Trading Higher Today

Anusuya Lahiri
1 min read
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In this article:

  • Blackbaud, Inc (NASDAQ: BLKB) shares gained close to 16% premarket over reports of a possible takeover offer.

  • However, after reviewing the offer, Blackbaud's board rejected the non-binding proposal from Clearlake Capital Group, L.P., to acquire all of the company's outstanding shares for $71.00 per share in cash.

  • Following this comprehensive review, the board unanimously determined that the proposal was highly opportunistic and significantly undervalued Blackbaud.

  • Also Read: Blackbaud To Pay $3M Penalty To Settle SEC Charges For Misleading Disclosures Pertaining To 2020 Ransomware Attack

  • As such, the board determined that the Clearlake proposal is not an appropriate basis for engagement and is not in the best interest of stockholders.

  • The takeover offer implied a 22.8% premium to Blackbaud's Friday closing price of $57.83.

  • The per-share bid would value Blackbaud at about $3.78 billion.

  • Clearlake owned 9.75 million Blackbaud shares, or 18.3% of the shares outstanding.

  • In February, Blackbaud reported fourth-quarter revenue growth of 10.8% year-on-year to $274.8 million, missing the consensus of $278.2 million.

  • Adjusted EPS of $0.68 beat the consensus of $0.60.

  • Price Action: BLKB shares traded higher by 15.4% at $66.75 premarket on the last check Monday.

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This article Why Blackbaud Shares Are Trading Higher Today originally appeared on Benzinga.com

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