Blackbaud, a major player in cloud software for nonprofits, has entered into an agreement to acquire JustGiving, a United Kingdom-based online fundraising services provider and online social giving platform, expanding its global crowdsourcing reach.
Blackbaud has agreed to acquire all of the outstanding equity interests of JustGiving for an aggregate purchase price of £95 million (roughly $121 million U.S.), subject to certain adjustments. The closing of the transaction is anticipated later this year at the conclusion of regulatory review in the U.K. Blackbaud expects to finance the acquisition with cash on hand and borrowings under its existing credit facility.
The two companies will determine their full integration strategy at that time, according to an announcement from Blackbaud. JustGiving has been a leader in peer-to-peer fundraising for both nonprofits as well as individuals with people in 164 countries raising more than $4.5 billion through its online platform since 2001.
Blackbaud’s stock is traded on NASDAQ, opening today at $90.32 a share, close to its 52-week high of $90.86. The stock price is up 36.25 percent year over year. The firm has a market cap of $4.3 billion on $730.8 million in revenue.
This is the at least 14th technology, software or consulting firm Blackbaud has acquired during roughly the past decade. It bought Campagne Associates in 2006. That was followed by Target Software and Target Analysis (2007), eTapestry (2007), Kintera (2008), Public Interest Data (2011), Everyday Hero (2011), Convio (2012), WhippleHill (2014), MicoEdge (2014), Smart Tuition (2015), Attentive.ly (2016) and AcademicWorks (2017).
“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,” said Jerry Needel, president and general manager of Blackbaud Consumer Solutions. “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.”
The acquisition improves Blackbaud’s abilty to serve both individual donors and nonprofits, expanding the peer-to-peer fundraising capabilities of its TeamRaiser and everydayhero, which are used by to connect causes to individuals. The acquisition will also add a new personal crowdfunding capability that can be rolled out in the U.S. and elsewhere, as well as position Blackbaud to better serve the U.K. market, where it has operated for more than two decades, and where JustGiving is a fundraising leader.
“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,” said Mike Gianoni, president and CEO of Blackbaud. “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.”
The two companies have entered into a definitive acquisition agreement as of Friday, June 23, which will undergo a customary regulatory review in the U.K. The transaction is anticipated to close later this year, and the two companies will determine their full integration strategy at that time.
JustGiving is headquartered in London, U.K. Blackbaud is headquartered in Charleston, S.C. with operations around the globe, including in London. JustGiving staff are expected to transition to Blackbaud following the completion of the customary regulatory review and become part of Blackbaud’s London-based International Markets Group, led by Jerome Moisan, senior vice president and president of Blackbaud’s International Markets Group.
Editor’s Note: This story was updated to correct Blackbaud’s revenue.