Nonprofit-software provider Blackbaud has added to its growing empire with the purchase of Kintera, a struggling competitor.
The $46 million cash deal, which includes all Kintera shares at a price of $1.12 each, marks the fifth acquisition by Blackbaud in less than three years.
As part of the deal, Richard LaBarbera, president and CEO of Kintera, will continue to lead the company, which has about 4,000 nonprofit and government customers and reported a loss of $15.8 million in 2007 on revenues of $44.9 million.
Less than a month ago, San Diego-based Kintera, which has never posted a profit, announced a restructuring that would trim its workforce by 14 percent in an effort to boost profitability by reducing expenses by more than $1 million a quarter.
“Our focus will now turn exclusively to better meeting the needs of our customers and collaborating with Blackbaud to leverage the investment they are making to better serve the nonprofit sector,” LaBarbera says in a statement.
The purchase will expand Blackbaud’s service offering through Kintera’s online Sphere technology platform, which is used to manage fundraising events for clients, including the American Lung Association and Sesame Workshop.
“The online solutions of the two companies have historically served different segments of the market and this acquisition gives us the ability to broaden our addressable market with proven and rich online product functionality,” Marc Chardon, president and CEO of Blackbaud, says in a statement.
Based in Charleston, S.C., Blackbaud has more than 1,700 employees and 19,000 customers, including the American Red Cross and the Arthritis Foundation, and for 2007 posted income of $31.7 million on revenues of $257 million.