Blackbaud, Inc. Announces Acquisition of Kintera
May 29 2008 - 3:12PM
Business Wire
Blackbaud, Inc. (NASDAQ: BLKB), the leading provider of software
and related services designed specifically for nonprofit
organizations, announced today that it is acquiring Kintera, Inc.
(NASDAQ: KNTA), a pioneer and leading provider of a Software as a
Service (SaaS) solution to the nonprofit and government sectors.
Under the terms of the agreement, Blackbaud will pay an all-cash
purchase price of approximately $46.0 million. Blackbaud expects to
finance the deal with cash and borrowings from its credit facility.
Kintera�s principal offering is its online Sphere� technology
platform, which is used by such leading organizations as American
Lung Association, Big Brothers Big Sisters of America,
International Fund for Animal Welfare, Lance Armstrong Foundation
and Sesame Workshop to manage online fundraising events and in 2007
processed over $400 million in online gifts. The company also
offers wealth profiling and screening services as well as an
accounting software solution, both similar to offerings of
Blackbaud. With approximately 4,000 customers, Kintera is
recognized for the proven capabilities of its Sphere� SaaS offering
that has allowed non-profits to effectively grow their base of
supporters and expand their online fundraising initiatives. The
company reported $44.9 million in total revenue for 2007. Marc
Chardon, Blackbaud's President and CEO, said, "The acquisition of
Kintera is very exciting for us and for the nonprofit industry as a
whole. Expanding Blackbaud�s online offering in this way further
establishes Blackbaud as the leading solutions partner for
non-profit organizations. The online solutions of the two companies
have historically served different segments of the market and this
acquisition gives us the ability to broaden our addressable market
with proven and rich on-line product functionality.� Chardon
continued, �Our core capabilities are complementary and we expect
to continue to offer a full range of solutions that effectively
meet non-profits� needs for donor acquisition and cultivation that
are integrated with our suite of CRM solutions, including The
Raiser�s Edge�.Kintera's �Friends Asking Friends�� team fundraising
and advocacy solutions are well suited for organizations that use
these programs to grow their base of supporters. Similarly,
Blackbaud�s NetCommunity� offering is ideally suited for enriching
the online experience of current donors enhancing the value of data
that already exists in the CRM system.� Chardon added, �We are also
pleased to offer new options to Kintera�s accounting and wealth
data customers. P!N� has been innovative in coupling traditional
wealth screening services with online offerings and we are excited
about the potential of combining these offerings with Target
Analytics� current product portfolio. Likewise, Fundware� has long
met the fund accounting needs of many non-profits and we expect to
work closely with Kintera and their partners to enhance the range
of solutions available to this important set of customers.
Combining these solutions with Blackbaud�s current offerings will
allow us to continue to grow these important segments of our
business.� Kintera will continue to be led by its current President
and CEO, Richard LaBarbera, a high tech industry veteran with more
than 30 years experience working with such leading software
providers as Sybase, Siemens/Nixdorf, Storage Technology and IBM.
Kintera operations will continue to be directed from their existing
offices in San Diego. LaBarbera said, �Joining with Blackbaud gives
us a way to leverage our capabilities with those of the industry
leader and thus significantly improve the customer�s experience.
Importantly, this move also means that non-profits will be able to
choose Kintera solutions confident in the knowledge that they are
backed by Blackbaud�s robust corporate infrastructure and that the
partner they have selected will be there to serve them for many
years into the future. Our focus will now turn exclusively to
better meeting the needs of our customers and collaborating with
Blackbaud to leverage the investment they are making to better
serve the non-profit sector. We are very excited about the
potential to offer more compelling solutions that enhance the donor
experience and increase non-profits� abilities to raise more
money.� Tim Williams, Blackbaud's Senior Vice President and Chief
Financial Officer, stated, "In addition to the strategic reasons
supporting the acquisition of Kintera, we believe the acquisition
is attractive from a financial perspective as well. Subscription
revenue was already the fastest growing source of revenue at
Blackbaud and it was expected to become larger than license revenue
at some point in the second half of 2008. With the acquisition of
Kintera, this will become a certainty as we will add another
significant source of subscription-based revenue from an on-demand
service offering. The evolution of Blackbaud�s business model
toward new revenue sources with ratable revenue recognition has
been a significant and positive development over the past several
years, and it complements the very strong cash flow profile of the
Company.� Blackbaud�s acquisition of Kintera is structured as an
all-cash tender offer for all of the shares of Kintera at a price
of $1.12 per share. The Company is expected to formally launch the
tender sometime next week and close on or around July 2. Conference
Call Details: Blackbaud will host a conference call today, May 29,
2008, at 5:30 p.m. (Eastern Time) to discuss the acquisition. To
access this call, dial 888-599-4858 (domestic) or 913-312-0834
(international). A replay of the conference call will be available
through June 5, 2008 at 888-203-1112 (domestic) or 719-457-0820
(international). The replay passcode is 2074070. A live webcast of
the conference call will be available on the �Investor Relations�
page of the Company�s Web site, and a replay will be archived on
the Web site as well. About Blackbaud Blackbaud is the leading
global provider of software and services designed specifically for
nonprofit organizations, enabling them to improve operational
efficiency, build strong relationships, and raise more money to
support their missions. Approximately 19,000 organizations �
including the American Red Cross, Dartmouth College, the WGBH
Educational Foundation, Episcopal High School, Lincoln Center,
Cancer Research UK, Special Olympics, and Arthritis Foundation �
use one or more of Blackbaud products and services for fundraising,
constituent relationship management, financial management, direct
marketing, school administration, ticketing, business intelligence,
website management, prospect research, consulting, and analytics.
Since 1981, Blackbaud�s sole focus and expertise has been
partnering with nonprofits and providing them the solutions they
need to make a difference in their local communities and worldwide.
Headquartered in the United States, Blackbaud also has operations
in Canada, the United Kingdom, and Australia. For more information,
visit www.blackbaud.com. About Kintera, Inc. Kintera, Inc. (NASDAQ:
KNTA) provides software as a service to help organizations quickly
and easily reach more people, raise more money and run more
efficiently. The Kintera Sphere� technology platform empowers The
Giving Experience�, and features a social constituent relationship
management (CRM) system, enabling donor management, e-mail and
communications, Web sites, events, advocacy programs, wealth
screening and accounting. For more information about Kintera
software and services, visit www.kintera.com. Forward-looking
Statements Except for historical information, all of the
statements, expectations, and assumptions contained in this news
release are forward-looking statements that involve a number of
risks and uncertainties. Although Blackbaud attempts to be accurate
in making these forward-looking statements, it is possible that
future circumstances might differ from the assumptions on which
such statements are based. In addition, other important factors
that could cause results to differ materially include the following
risks related to the expected timing and financial or other
benefits of the Kintera acquisition: management of integration of
acquired companies and other risks associated with acquisitions;
uncertainty regarding increased business and renewals from existing
customers; continued success in sales growth; general economic
risks; risk associated with successful implementation of multiple
integrated software products; the ability to attract and retain key
personnel; risks related to our dividend policy and share
repurchase program, including potential limitations on our ability
to grow and the possibility that we might discontinue payment of
dividends; risks relating to restrictions imposed by the credit
facility; risks associated with management of growth; lengthy sales
and implementation cycles, particularly in larger organizations;
technological changes that make our products and services less
competitive; and the other risk factors set forth from time to time
in the SEC filings for Blackbaud, copies of which are available
free of charge at the SEC�s website at www.sec.gov upon request
from Blackbaud's investor relations department. All Blackbaud
product names appearing herein are trademarks or registered
trademarks of Blackbaud, Inc. Securities Law Disclosure The tender
offer for the outstanding common stock of Kintera, Inc. has not yet
commenced. This press release is for informational purposes only
and is not an offer to buy or the solicitation of an offer to sell
any securities. The solicitation and the offer to buy shares of
Kintera common stock will be made only pursuant to an offer to
purchase on Schedule TO and related materials that Blackbaud
intends to file with the SEC. Kintera also intends to file a
solicitation/recommendation statement on Schedule 14D-9 with
respect to the offer. Kintera stockholders and other investors
should read these materials carefully when they become available
because they will contain important information, including the
terms and conditions of the offer. Kintera stockholders and other
investors will be able to obtain copies of these materials without
charge from the SEC through the SEC�s website at www.sec.gov, from
Georgeson Inc., the information agent for the offer, toll-free at
(866) 328-5439 (banks and brokers call (212) 440-9800), from
Blackbaud (with respect to documents filed by Blackbaud with the
SEC) by going to the Investor Relations section of Blackbaud�s
website at www.blackbaud.com, or from Kintera (with respect to
documents filed by Kintera with the SEC) by going to the Investor
Relation�s section of Kintera�s website at www.kintera.com.
Stockholders and other investors are urged to read those materials
carefully prior to making any decisions with respect to the offer.
Kintera (MM) (NASDAQ:KNTA)
Historical Stock Chart
From May 2024 to Jun 2024
Kintera (MM) (NASDAQ:KNTA)
Historical Stock Chart
From Jun 2023 to Jun 2024