Cloud Software Company Blackbaud to Acquire Charity Crowdfunding Platform JustGiving

Cloud software company Blackbaud, Inc. (NASDAQ: BLKB) announced on Monday it has entered into an agreement to acquire UK-based charity crowdfunding platform, JustGiving. The acquisition will notably enhance Blackbaud’s capabilities to serve both individual donors and nonprofits, expanding the peer-to-peer fundraising capabilities Blackbaud offers today through TeamRaiser and everydayhero.

Blackbaud reports that under the purchase agreement, it has agreed to acquire all of the outstanding equity interests of JustGiving for an aggregate purchase price of £95 million, subject to certain adjustments. The closing of the transaction is anticipated to occur at the conclusion of a customary regulatory review in the U.K. Blackbaud expects to finance the acquisition with cash on hand and borrowings under its existing credit facility.

The acquisition comes as social and mobile giving continue to grow and fundraising driven by individual supporters rallying others in their networks (referred to as ‘peer-to-peer fundraising’ in the sector) plays a significant and growing role in charitable giving. JustGiving has been a leader in peer-to-peer fundraising for both nonprofit organizations as well as individuals (also known as personal crowdfunding), with people in 164 countries raising over $4.5 billion for good causes through its online platform since 2001.”

Jerry Needel, president and general manager of Blackbaud Consumer Solutions, commented on the agreement:

“Today, people are willing to do more than ever before to support causes they care about, but they want to do it on their own terms. To put their passion into action, they need technology that gives them the power to connect with other change agents and organizations. Bringing JustGiving into the Blackbaud family reinforces our strong commitment to catalyzing the impact of individual change agents. It’s also part of our commitment to helping social good organizations navigate and respond to key shifts in giving behavior.”

Mike Gianoni, president and CEO of Blackbaud. also noted:

“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. Together, JustGiving’s proven crowdfunding expertise and Blackbaud’s cloud solutions, customer base and leadership in the social economy are a powerful, unmatched combination that will ultimately forge deeper and more effective connections between people and the causes they support. This is the kind of innovation it takes to build a better world.”

Anne-Marie Huby, co-founder and managing director of JustGiving, said:

“Social, mobile and the rise of crowdfunding combined are transforming the way people give, and the pace of change is unprecedented. By bringing together JustGiving’s community and social platform with Blackbaud’s unrivalled expertise and capabilities, we will be better able to help great causes reach more people and raise more money, more effectively and intelligently than ever before.”

Sidley Austin LLP advised Blackbaud, Inc. on its acquisition of JustGiving for £95 million. The Sidley team was led by Fatema Orjela in London and Blackbaud’s in-house legal team was led by Jeffrey Angerman, Deputy General Counsel.

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