Software Giant Blackbaud Acquires Everfi for $750 Million

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. 

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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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Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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