Blackbaud Announces Sale of EVERFI

Rhea-AI Summary

Blackbaud (NASDAQ: BLKB) has announced the sale of its EVERFI Inc. business to an unaffiliated private investment firm for a nominal amount, with the transaction closing on December 31, 2024. The company plans to provide additional details in its upcoming Form 10-K filing.

The company is working with the buyer and EVERFI leadership to ensure a smooth transition for customers and employees. EVERFI will continue to provide educational courses focusing on financial literacy, wellness, compliance, and workplace training. Blackbaud will retain its YourCause® portfolio and Impact Edge™ solution, which remain central to its strategy in supporting corporate impact initiatives.

Positive

• Retention of core corporate impact solutions (YourCause® portfolio and Impact Edge™)
• Strategic divestment potentially reducing operational complexity

Negative

• Sale of EVERFI for only a nominal amount suggests potential loss on investment
• Possible reduction in revenue streams and market presence in educational sector

Insights

Financial Analyst

This divestiture of EVERFI marks a strategic shift for Blackbaud, particularly noteworthy given the "nominal amount" sale price - a stark contrast to the original $750 million acquisition in 2021. The minimal sale price suggests significant value erosion and likely implies a substantial write-down. Retaining the YourCause portfolio and Impact Edge solution indicates Blackbaud is streamlining operations to focus on its core corporate impact technology offerings. For investors, while the immediate financial impact appears negative due to the likely loss on sale, this move could improve long-term operational efficiency and profit margins by eliminating a potentially underperforming asset. The timing at fiscal year-end suggests careful tax planning. The full financial implications, including potential tax benefits and impact on the balance sheet, will be important details to watch for in the upcoming 10-K filing.

Corporate Strategy Expert

The disposal of EVERFI represents a significant strategic pivot that warrants attention. The "nominal amount" sale price indicates this was more about strategic repositioning than value realization - essentially a strategic exit from a non-core business segment. Blackbaud's decision to retain YourCause and Impact Edge while divesting EVERFI suggests a more focused approach to their corporate impact technology stack. This streamlining could lead to improved operational focus and better resource allocation. The careful mention of working closely with the buyer for a seamless transition indicates an attempt to preserve customer relationships and minimize disruption, which is important for maintaining Blackbaud's reputation in the social impact software space. This move aligns with broader industry trends where companies are increasingly focusing on their core competencies rather than maintaining diverse portfolios.

CHARLESTON, S.C., Jan. 2, 2025 /PRNewswire/ -- Blackbaud, Inc. (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced it has sold its EVERFI Inc. business to a private investment firm that is unaffiliated with Blackbaud. After a diligent and thorough strategic process, the sale was closed on December 31, 2024, for a nominal amount. The Company will be sharing more details in its next Form 10-K filing.

"We are working closely with the buyer and the EVERFI leadership team to provide a seamless transition for EVERFI's customers and employees," said Dale Strange, president of corporate impact, Blackbaud. "EVERFI remains well equipped to support its customers, delivering educational courses on key topics like financial literacy, wellness, compliance and workplace training." 

Blackbaud's YourCause® portfolio and Impact Edgeä solution, which power corporate giving, volunteering, engagement and impact reporting, will remain with Blackbaud and are a core part of the Company's go-forward strategy as we enable purpose-driven companies to power their corporate impact initiatives.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers, and Forbes' list of America's Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com or follow us on X/Twitter, LinkedIn, Instagram and Facebook.

Media Inquiries
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Investor Contact
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Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties. Although we attempt to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the risk factors set forth from time to time in our filings with the Securities and Exchange Commission (the "SEC"), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. We assume no obligation and do not intend to update these forward- looking statements, except as required by law.

 

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SOURCE Blackbaud

FAQ

What was the sale price of EVERFI by Blackbaud (BLKB)?

EVERFI was sold for a nominal amount, with specific details to be disclosed in Blackbaud's upcoming Form 10-K filing.

When did Blackbaud (BLKB) complete the sale of EVERFI?

The sale of EVERFI was completed on December 31, 2024.

Which Blackbaud (BLKB) products will remain after the EVERFI sale?

Blackbaud will retain its YourCause® portfolio and Impact Edge™ solution, which power corporate giving, volunteering, engagement, and impact reporting.

What services will EVERFI continue to provide after being sold by Blackbaud (BLKB)?

EVERFI will continue to provide educational courses on financial literacy, wellness, compliance, and workplace training.