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Blackbaud announces $200 million share buyback plan

EditorRachael Rajan
Published 2024-03-04, 07:42 a/m
© Reuters.
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CHARLESTON, S.C. - Blackbaud , Inc. (NASDAQ: NASDAQ:BLKB), a software company focused on social impact, has announced its plan to repurchase $200 million of its common stock.

This buyback is part of a broader $500 million repurchase authorization and aims to acquire 7% to 10% of the company's outstanding shares by the end of 2024. The repurchase will occur through various methods, including accelerated share repurchase (ASR) plans, block trades, and open market purchases.

The company has already purchased approximately $77 million of its common stock since December 2023. Before the board authorization was expanded on January 17th, $41 million was bought back, and the remaining $36 million was repurchased under the current authorization.

Mike Gianoni, president, CEO, and vice chairman of Blackbaud, expressed optimism about the company's financial strategy and growth potential. He stated that the decision to increase the share repurchase authorization reflects confidence in Blackbaud's value and future market opportunities. Gianoni believes the stock is currently undervalued and the buyback is aligned with the company's aim to enhance shareholder value.

The funding for the ASR and future repurchases under the authorization will come from Blackbaud's cash reserves, operating cash flow, and potential borrowings under the company's existing credit facility.

Blackbaud is known for providing software solutions that support fundraising, financial management for nonprofits, digital giving, grantmaking, corporate social responsibility, and education management. The company has been recognized for its corporate responsibility and remote work environment by Newsweek and Quartz, respectively.

The company's participation in investor conferences on March 4 and 5 was accompanied by the posting of presentation materials on their investor webpage and the filing of a Form 8-K with the Securities and Exchange Commission. These materials are available for public viewing on Blackbaud's website.

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The information in this article is based on a press release statement from Blackbaud.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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