It was revealed Monday that Clearlake Capital Group has offered to acquire all of Blackbaud 's (NASDAQ:BLKB) outstanding shares for $80 per share. The all-cash deal values Blackbaud at $4.3 billion.
In a filing, it was shown that the firm had raised its offer for the cloud software business from the $71 per share offer it made in March last year.
Clearlake said that since its initial investment in the company in March 2020, it has continued to believe in Blackbaud's potential.
"However, despite the management team's determined best efforts, we must acknowledge that the company continues to face substantial operational challenges that require transformational change and investment over many years," wrote Clearlake. "We believe these challenges can practically only be addressed as a private company with the support of a strategic party or sponsor, such as Clearlake, that can provide the necessary financial and institutional support."
They feel the challenges facing Blackbaud have not been, and cannot be, addressed as a public company. "We view a 'take-private' transaction with Clearlake as the clearest path to maximizing value for the company's stockholders," added Clearlake.
The new offer represents a premium of approximately 23% and 22% to the three-year and five-year volume-weighted average share prices of $65.29 and $65.82, respectively, as of the market close on April 12, 2024.