Cloud software company, Blackbaud announced the acquisition of EVERFI in a cash and stock transaction for approximately $750 million, subject to certain customary adjustments. EVERFI, with a combination of cloud-based software and its community engagement ecosystem, became one of the pioneers of Impact-as-a-Service. The company, headquartered in Washington D.C., allows organizations to respond to today’s challenges through education, activating community engagement at scale, delivered as a service.
More than 45 million learners globally
EVERFI’s technology and learning platform managed to reach over 45 million users worldwide. Additionally, the company also delivers insight to its partners allowing them to measure and amplify the impact of the educational programs.
The duo plans to improve the technology and data-driven impact space, which will enable organizations committed to social impact to benefit. The acquisition brings a vast network of K-12 schools, a strong enterprise customer base, recognized excellence in the ESG and CSR sectors, and complementary offerings together to grow the Impact-as-a-Service vision.
- Strengthens the Social Good Technology Space: The acquisition advances Blackbaud’s position as a leader in the rapidly evolving ESG and CSR spaces. Together, the companies will be a leading partner to help corporations drive meaningful social impact across a large span of technology-enabled program areas, from community education to volunteering to grantmaking to philanthropy.
- Doubles Total Addressable Market (TAM): The acquisition doubles Blackbaud’s TAM to more than $20 billion with over half of Blackbaud’s addressable opportunity now in the corporate sector, underpinned by long-term ESG growth trends and strong enterprise corporate relationships.
- Accelerates Revenue Growth: EVERFI is expected to be immediately accretive to Blackbaud’s revenue growth profile, adding an estimated $120 million in 2022 revenue with a year-on-year growth rate approaching 20%. This acquisition combined with recent company performance allows Blackbaud to significantly pull forward the timeline for achieving its long-term goal of mid-to-high single digit organic revenue growth, beginning in 2022.
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Mike Gianoni, president and CEO of Blackbaud Significant Cross-Sell Opportunities with Complementary Offerings: The addition of EVERFI, coupled with Blackbaud’s existing YourCause offerings, will enable corporate customers to accelerate their programs’ impact in the social good community. Both companies have substantial penetration with Fortune 500 customers but minimal customer overlap and will pursue revenue synergies in the form of cross-selling and upselling. In the education sector, EVERFI’s strong presence in the K-12 public school space complements Blackbaud’s strong presence in the K-12 private school and higher education markets.
Mike Gianoni, president and CEO of Blackbaud said,
« As companies continue to invest further in ESG and CSR programs to both give back and meet regulatory demands, they need a partner who can help connect their philanthropic goals to meaningful social impact opportunities. Blackbaud and EVERFI will work together to realize a shared vision of measurable social impact through world-class technology. »