Blackbaud buys eTapestry

Blackbaud, a provider of software and services to nonprofits, has acquired eTapestry, a provider of on-demand fundraising solutions for nonprofits.

Blackbaud also reported net income of $8.2 million, or 19 cents a share, in the second quarter ended June 30, up from $7.6 million, or 17 cents a share, in the same period a year earlier.

Revenue for the second quarter totaled $64 million, up from $48.6 million a year earlier.

Blackbaud’s board of directors declared a third-quarter dividend of 8.5 cents a share payable on Sept. 14 to stockholders of record on Aug. 28.

Blackbaud, based in Charleston, S.C., says the deal for Indianapolis-based eTapestry is worth $24.8 million, plus up to $1.5 million under a two-year, stock-based performance incentive arrangement.

eTapestry, with 85 employees and over 3,000 customers, will give Blackbaud a boost among small and mid-sized nonprofits, says Blackbaud CEO Marc Chardon.

“This acquisition opens up a market opportunity that Blackbaud was not actively addressing,” he says in a statement.

Jay Love, co-founder and CEO of eTapestry, will continue to lead the firm, which will continue operations in Indianapolis as a wholly-owned subsidiary of Blackbaud.

Love previously was a sales and marketing consultant at Target Software, which Blackbaud acquired last January, and was president and CEO of Master Software Corp., which Blackbaud acquired in 1997.

John Moore, eTapestry’s co-founder and vice president of development, and Steve Rusche, eTapestry’s co-founder and chief operating officer, plan to continue in their current roles with the firm as it becomes part of Blackbaud.

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