Thirteen years after its founding and just two years after going public, Convio is no longer its own company. The Austin, Texas-based fundraising technology firm is now officially a wholly owned subsidiary of its longtime competitor, Blackbaud. The two firms today begin their first day of business as one entity.
Charleston, S.C.-based Blackbaud acquired its online and technology rival for $16 per share, in a deal totaling $325 million, financed through a combination of cash and borrowings from its credit facility. Convio was founded in 1999 and became a public company in April 2010, opening at $10 per share. In recent years, Blackbaud has spent more than $430 million acquiring other companies, including Target Analytics, Kintera and eTapestry, among others.
Blackbaud completed a “short-form” merger, without the need for a vote or meeting of Convio stockholders, because it was able to tender more than 90 percent of Convio’s almost 19 million outstanding shares.
In an announcement released today, Blackbaud said it plans to support Convio’s current offerings, and the companies’ combined research and development teams will work with customers to improve and extend current products and build new offerings. Blackbaud plans to keep Convio’s current office structure, adding key offices in the Bay Area and Austin. Convio’s former president and CEO Gene Austin will lead the enterprise customer business unit at Blackbaud, reporting to President and CEO Marc Chardon.
Chardon, in a two-minute video posted today on Blackbaud’s website, said the company plans to “develop a product roadmap for moving forward” within the next 90 days.
Founded in 1980, Blackbaud has about 2,400 employees and Convio has approximately 450. Combined, the two companies account for more than $6 billion annually in fundraising transactions.