Publish Jan. 17, 2012
Blackbaud Inc., a global provider of software and services for nonprofits headquartered in Charleston, entered into an agreement to acquire Convio Inc. for $275 million. Blackbaud acquired Convio to make multi-channel supporter engagement for nonprofits a reality.
Convio’s knowledge in online and social channels was desired to complement Blackbaud’s software products, according to a news release.
Blackbaud will purchase the outstanding shares of Convio for $16 per share. The deal will be financed using a combination of cash and debt. Convio stock closed at $10.74 per share prior to the deal.
The transaction is expected to close in the first quarter of 2012 and be accretive to Blackbaud’s non-GAAP financial results.
“We fully expect that Convio’s best-in-class, SaaS-based capabilities for large events, advocacy and federated organizations will enable Blackbaud to offer the industry’s most diverse and flexible set of online capabilities on a global basis,” said Marc Chardon, Blackbaud president and CEO. “Moreover, the addition of Convio will broaden Blackbaud’s application portfolio, enabling the combined company to offer a comprehensive set of multi-channel supporter engagement solutions to nonprofit organizations of all sizes.”
Convio brings more than 1,500 customers in the U.S., Canada and the United Kingdom.
The combined company is estimated to have $440 million in revenue and a free cash flow of $66.5 million, according to unaudited data released by the companies.
The acquisition of Convio will be funded by a combination of Blackbaud’s existing cash balance, expansion and extension of the company’s current debt facility, as well as newly-issued syndicated debt. After closing the acquisition, the combined company is expected to have net debt of approximately $240 million.