Kintera, Inc. (NASD: KNTA) announced that they will be acquired by Blackbaud, Inc. (NASD: BLKB) in a cash tender offer for $1.12 per share, or a total price of $46.0 million. The acquisition makes sense since Kintera is a leader of on-demand solutions for nonprofit organizations in the United States, whereas Blackbaud is the leading provider of software and related services designed specifically for nonprofit organizations. At the closing of Friday’s stock trading, Kintera’s stock rose 58.82%.
Kintera’s current president and CEO, Richard LaBarbera, will continue with the company’s operations in San Diego and their other locations, “Joining with Blackbaud gives us a way to leverage our capabilities with those of the industry leader and thus significantly improve the customer’s experience. Importantly, this move also means that non-profits will be able to choose Kintera solutions confident in the knowledge that they are backed by Blackbaud’s robust corporate infrastructure and that the partner they have selected will be there to serve them for many years into the future. 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 non-profit sector. We are very excited about the potential to offer more compelling solutions that enhance the donor experience and increase non-profits’ abilities to raise more money.”
“The acquisition of Kintera is very exciting for us and for the nonprofit industry as a whole. Expanding Blackbaud’s online offering in this way further establishes Blackbaud as the leading solutions partner for non-profit organizations,” commented Blackbaud’s President and CEO, Marc Chardon. “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 on-line product functionality.”
“Our core capabilities are complementary and we expect to continue to offer a full range of solutions that effectively meet non-profits’ needs for donor acquisition and cultivation that are integrated with our suite of CRMsolutions, including The Raiser’s Edge®. Kintera’s “Friends Asking Friends”® team fundraising and advocacy solutions are well suited for organizations that use these programs to grow their base of supporters. Similarly, Blackbaud’s NetCommunity™ offering is ideally suited for enriching the online experience of current donors enhancing the value of data that already exists in the CRM system,” Mr. Chardon concluded.
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