Breaking: Private Equity Links 3 Nonprofit Tech Firms

EveryAction is combining with Social Solutions and CyberGrants in what might be one of the largest ever roll-up of providers of social good tech. Principals of the deal estimate the enterprise value of the transaction to be $2 billion, which included assumption of some debt. The deal is being put together by Apax Partners, a London-based investment firm that focuses on sustainability and impact.

The platforms will continue with each now offering access to fundraising and digital marketing from Washington, D.C.-based EveryAction, case management and outcomes software via Austin, Texas-based Social Solutions and grant-making and employee engagement software from CyberGrants in Andover, Mass.

The deal comes just two months after EveryAction acquired Salsa Labs, one of the best-known software companies serving nonprofits. Terms of that deal were not disclosed. That deal followed EveryAction’s acquisitions of GiveGab, ActionKit, BSD Tools, DonorTrends and Mobilize since receiving a growth investment from Insight Partners in 2018.

Other venture firms were involved individually with the three companies that comprise the newest deal – Insight Partners, Vista Equity Partners, and Waud Capital Partners. Apax becomes the major investor with Insight selling a majority of its stake in EveryAction to Apax. Vista will continue to have a minority stake and Waud is exiting its investment, selling to Apax.

“By bringing these three (tech) companies together, we are well positioned to match nonprofits looking for more donations and volunteers, with the philanthropists, foundations, companies, and employees working with CyberGrants, who are looking for more opportunities to donate and volunteer,” said Stu Trevelyan, CEO of EveryAction, who will head the combined organization.

The new entity has an undisclosed legal name but a process will begin shortly to brand the umbrella organization, said Trevelyan. He described it as a three-legged stool with the overarching corporation name a seat on top. The CEOs of Social Solutions and CyberGrants will continue to run those organizations and also will be part of the executive team, he said.

CyberGrants last year powered more $6 billion in employee-matched contributions, foundation/corporate grants, and other donations; and facilitated more than 50 million volunteer hours by employees. “We’re also well positioned to provide actionable insights and analytics around fundraising and volunteering, and to provide data on program outcomes that will turbo-charge asks to deliver better results,” Trevelyan added.

Social Solutions’ Apricot, Penelope and ETO products provide users with case management, participant connection, data insights, outcome analytics and funder enablement solutions. Social Solutions was founded 20 years ago by social workers who saw the potential of technology to improve outcomes and help accelerate lasting social change in the communities they serve. More than 90,000 users have adopted the Social Solutions platform to improve their data by measuring and optimizing outcomes, he said.

Apax was co-founded by Sir Ronald Cohen, an impact investing pioneer. In 2006, Apax established the Apax Foundation to focus on grants and employee donations that enable social mobility in underserved communities; since its inception, it has contributed more than $30 million to those efforts.

CyberGrants has a large overseas presence and Apax will help facilitate growth. “It is one of the attractive elements,” said Trevelyan.

The new company will have combined annual revenue of more than $200 million with 1,000 employees. According to Trevelyan, the transaction is several times larger than any merger and acquisition in the history of the social good software sector. The claim could not immediately be independently verified.

This might not be the final leg of the stool. Trevelyan said the new entity will remain active in mergers and acquisitions.