News and analysis
September 05, 2014

Blackbaud Extends Reach With $160-Million Acquisition of MicroEdge

Blackbaud, the dominant provider of donor and fundraising management systems for nonprofits, announced this week that it is purchasing MicroEdge for $160-million, a move that will help Blackbaud expand in the market of deep-pocketed foundations.

MicroEdge develops and markets software and management systems used by large donors and foundations to track gifts and their impact. Companies also use MicroEdge products to manage their giving and corporate social-responsibility programs.

The 30-year-old MicroEdge has roughly 2,000 customers, according to Morningstar stock analysis, and its customers represent about 80 percent of foundations with more than $500-million in assets.

MicroEdge, based in New York, is owned by equity funds Vista Equity Partners and Bregal Sagemount. The cash deal is expected to close in two months.

Joe Moye, president of Blackbaud’s Enterprise Business Unit, said his company will "extend MicroEdge’s corporate social-responsibility offerings to help companies maximize their philanthropic impact through cutting-edge administration, reporting, employee engagement, and other capabilities."

Blackbaud, the largest vendor of management software for nonprofits, says it has 30,000 customers and reported sales of $503.8 million in 2013.

According to information from MicroEdge, CEO Kris Nimsger will continue to lead the business as part of Blackbaud. MicroEdge customers are advised to continue working with their account manager and current technical-support teams.

This represents the second acquisition for Blackbaud in 2014. The publicly traded company, headquartered in Charleston, S.C., bought WhippleHill Communications in June for $30 million.