By Lisa Kerner
Charlotte, N.C., May 29 - Blackbaud, Inc. announced it entered into a definitive agreement to acquire Kintera, Inc. in a cash tender offer for $1.12 per share, or approximately $46 million.
According to a Blackbaud news release, the company plans to finance the offer through cash and borrowings from its credit facility.
Blackbaud said it will launch the tender offer next week and it will close on or around July 2.
Kintera will continue to be led by current president and chief executive officer Richard LaBarbera once the transaction is complete, a Kintera news release stated.
Tim Williams, Blackbaud senior vice president and chief financial officer, noted that the acquisition of Kintera will provide another significant source of subscription-based revenue.
"The evolution of Blackbaud's business model toward new revenue sources with ratable revenue recognition has been a significant and positive development over the past several years, and it complements the very strong cash flow profile of the company," Williams added.
Kintera is a San Diego-based content management software developer.
Blackbaud, located Charleston, S.C., specializes in software, such as the Raiser's Edge, and services for nonprofit organizations.
| Acquirer: | Blackbaud, Inc.
|
| Target: | Kintera, Inc.
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| Announcement date: | May 29
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| Transaction total: | $46 million
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| Price per share: | $1.12
|
| Expected closing: | July 2
|
| Stock price for target: | Nasdaq: KNTA: $0.66 on May 28
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