Blackbaud, a Charleston-based software and service provider, may soon become a more comprehensive resource to its target audience of nonprofit organizations. The company announced that it has acquired MicroEdge, a provider of software solutions for the philanthropic community.
With technology from MicroEdge, Blackbaud puts itself in a better position to provide solutions for grant-making, corporate social responsibility and foundation management. Existing Blackbaud customers will reap these benefits, as well as new nonprofit groups that choose to work with the company.
“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.”
The transaction will result in Blackbaud acquiring all of the outstanding equity interests of MicroEdge for a purchase price of $160 million. It will be finalized by the end of Q4 2014. Blackbaud will finance the purchase with cash and borrowing under its existing credit facility.
MicroEdge, which is headquartered in New York City, has focused on helping its community organize and simplify its charitable work for almost 30 years. The company has also recently entered the Corporate Social Responsibility market with an employee engagement platform. This initiative encourages employee giving and volunteerism.
Charleston-based Blackbaud has also been active in the nonprofit and education sectors for about 30 years. Blackbaud offers both cloud-based and on-premise software solutions and related services to organizations of all sizes. The company works with more than 30,000 customers in 60 countries. Although it is headquartered in Charleston, it has operations in Australia, Canada, the Netherlands, Ireland and the United Kingdom.