September 2, 2014

Blackbaud to Acquire MicroEdge

Wall Street Journal

Acquisition expands company's solution portfolio to comprehensively serve foundation and corporate giving markets

Blackbaud, Inc. (Nasdaq: BLKB), a leading global provider of software and services for nonprofits, today announced it has signed an agreement to acquire MicroEdge, LLC, an innovative provider of mission-critical software solutions for the philanthropic giving community worldwide. This acquisition dramatically expands Blackbaud's offerings in the philanthropic giving sector with MicroEdge's comprehensive technology solutions for grantmaking, corporate social responsibility and foundation management. This combination also positions the expanded Blackbaud business to deliver innovation within its current customer base, as well as to organizations that provide funding to support nonprofit missions.

Under the purchase agreement for the transaction, Blackbaud will acquire all of the outstanding equity interests of MicroEdge for an aggregate purchase price of $160 million. The closing of the transaction is expected to occur in the fourth quarter of 2014, subject to customary closing conditions, including the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended. Blackbaud expects to finance the acquisition with cash on hand and borrowings under its existing credit facility.

"We're pleased to bring MicroEdge's innovative solution set into the Blackbaud portfolio of offerings," said Blackbaud president and CEO Mike Gianoni. "Combining our 33 years of research and development with MicroEdge's deep experience in these unique markets will position Blackbaud to expand its total addressable market, while offering an unprecedented set of technology solutions to address the needs of funders, nonprofits and corporations."

For nearly 30 years, MicroEdge has offered high-performance solutions that help the giving community organize, simplify and measure their acts of charitable giving. The company serves thousands of community, education, independent, family, faith-based and other foundation clients by offering extensive solutions for foundation and grants management. MicroEdge has also recently entered the fast growing Corporate Social Responsibility (CSR) market with an employee engagement platform that supports employee giving, volunteerism, and other CSR initiatives.

"We're enthusiastic about the potential for our clients and our team as we join Blackbaud", said MicroEdge CEO Kristin Nimsger. "Blackbaud has a rich heritage of technology leadership in the nonprofit sector, and MicroEdge is a leading provider of SaaS and software solutions for foundations in the charitable giving community. There are no two companies better positioned to connect these two segments of the market together, to drive significantly greater efficiency and collaboration, and to accelerate our goal of helping our mutual clients effectively measure the outcomes of their work."

Building on a renewed commitment to innovation made by Blackbaud president and CEO, Mike Gianoni in March, the company intends to further advance and extend the functionality of MicroEdge's solutions. "This acquisition creates a tremendous opportunity for Blackbaud to offer more customers new innovation and end-to-end solutions to meet their needs," said Joe Moye, president of Blackbaud's Enterprise Business Unit. "In addition to partnering with new charitable foundation customers, we also intend to extend MicroEdge's Corporate Social Responsibility offerings to help companies maximize their philanthropic impact through cutting edge administration, reporting, employee engagement, and other capabilities."

MicroEdge is headquartered in New York, and is a portfolio company of Vista Equity Partners and Bregal Sagemount.