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Blackbaud to acquire crowdfunding platform for $121M

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Blackbaud plans to acquire JustGiving, a London-based crowdfunding platform, for $121 million, according to a regulatory filing with the Securities and Exchange Commission.

The transaction is expected to close later this year, at which time the companies will determine how they will integrate.

Blackbaud, a Daniel Island-based tech firm whose software focuses on nonprofits and the education sector, was attracted to JustGiving’s online fundraising services designed to expand peer-to-peer fundraising, according to a news release.

JustGiving’s platform has handled $4.5 billion in donations for nonprofits and individuals since 2001.

Following the acquisition, Blackbaud will offer crowdfunding capabilities to clients in the U.S. and elsewhere, the company said in a news release. The new platform will expand off Blackbaud’s TeamRaiser and EverydayHero offerings, which enable nonprofits to connect causes and supporters.

“Social, mobile and the rise of crowdfunding combined are transforming the way people give, and the pace of change is unprecedented,” Anne-Marie Huby, co-founder and managing director of JustGiving, said in the release. “By bringing together JustGiving’s community and social platform with Blackbaud’s unrivaled expertise and capabilities, we will be better able to help great causes reach more people and raise more money.”

Blackbaud entered into an agreement Friday to acquire the outstanding equity interests of JustGiving, subject to certain adjustments. The transaction is expected to close after a customary regulatory review in the United Kingdom.

Blackbaud said in the filing that it expects to finance the acquisition with cash on hand and borrowings under its existing credit facility. The tech firm recently expanded its borrowing power to $700 million through 2022, according to a filing with the SEC.

The new credit facility — which includes a $300 million senior secured term loan and a $400 million senior secured revolving credit facility — can be expanded by an additional $200 million, subject to terms and conditions.

The deal replaced the company’s previous credit facility, which enabled the borrowing of $410 million in total as of 2014. Tony Boor, Blackbaud’s executive vice president and CFO, said the company outgrew that facility as the company’s cash flow increased by 32% since 2014.

Regarding the acquisition, Blackbaud CEO Mike Gianoni said: “As a software leader exclusively focused on innovation that drives social good, it’s in our DNA to respond to and anticipate changes in the way people give and connect with causes. This is an exciting next step in our commitment to delivering modern, mobile-first, integrated cloud technology that powers social good.”

Reach Liz Segrist at 843-849-3119.

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