Cloud software giant Blackbaud has announced that it is set to acquire “impact-as-a-service” firm Everfi for $750 million. This will be the company’s largest-ever acquisition.
The deal is closely linked to the ESG movement that is being promoted by leading investors including the Big Three index funds. Over the past few years, ESG has become an interesting part of investing methodologies that embrace sustainability factors to help companies identify better and improved business models.
It has now been almost two years since Blackbaud’s last acquisition when it acquired an employee engagement software company YourCause for around $157 million. Before acquiring EVERFI, Blackbaud has completed eight acquisitions for a total sum of $757 million over the course of that period.
The terms of the deal state that Blackbaud will pay around $450 million in cash and another $300 million in stocks.
How will this deal help Blackbaud and EVERFI
It is very clear how this acquisition will help both companies. Blackbaud, which primarily works with K-12 schools, faith communities, and non-profits will add another feather to its cap. This deal could potentially generate a staggering $120 million in revenue during 2022 for the company. That figure is around 20% more than the revenue generated by the company in 2021. Besides, Blackbaud will now reach a global audience of over 45 million learners.
Both EVERFI and Blackbaud have overlapping cultures. In addition, both the companies will share a symbiotic relationship and provide each other extra revenue and reach.
At the moment, EVERFI’s software is used for some of the largest CSR and ESG initiatives around the world.
Growing interest in ESG opens up new opportunities
The acquisition of EVERFI is set to double Blackbaud’s Total Addressable Market (TAM) to over $250 billion. At the moment, Blackbaud’s total addressable opportunity lies in the corporate sector. However, the long-term ESG trends coupled with the increasing need to forge strong corporate relationships have opened up new opportunities for Blackbaud.
Mike Gianoni, Blackbaud’s CEO said that as more and more companies invest in CSR and ESG initiatives to meet regulatory requirements and give back to society, they are seeking partners who can help them attain their philanthropic objectives. He further added that EVERFI and Blackbaud will continue to work together to achieve their shared goals with world-class technology.
The recent development will allow corporate customers to increase the impact of their programs on the social good community.
More about EVERFI
EVERFI is an impact-as-service firm that partners with educators and organizations to revolutionize how education is delivered. The firm leverages cutting-edge technology to help companies address intractable social issues.
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