UPDATE 2: Updated the blog post with new information.
We had some big news break in the nonprofit sector this morning, as Charleston, S.C.-based Blackbaud announced the acquisition of rival software firm Convio of Austin, Texas, for $275 million.
The acquisition would give the combined organizations an annual revenue of $440 million, free cash flow of $66.5 million, and net debt of $240 million. Blackbaud will acquire all outstanding shares of Convio's common stock for $16 per share. The purchase is expected to finalized during the first quarter of this year.
Some things to note about the acquisition:
- According to Jane Eggers, senior vice president of products and marketing at Blackbaud, only a "small handful of people" at the organization knew the acquisition was happening.
- Executives at both firms had been talking about a deal for years, but the timing wasn't right up until a few months ago.
- Convio President and CEO Gene Austin will join Blackbaud in a leadership post. He will report to Blackbaud President and CEO Marc Chardon.
- There was no mention about the future of Convio co-founder Vinay Bhagat. Eggers told NPT that it wasn't something she could speak to before the deal closes.
- The deal will be structured as a cash tender offer followed by a merger.
- Blackbaud will finance the transaction through existing cash balance, expansion and extension of the company’s current debt facility, as well as newly issued syndicated debt.