(Bloomberg) — Clearlake Capital Group LP is investigating a renewed effort to buy Blackbaud Inc . goes private, according to people familiar with the matter, about a year after its last access was denied by the cloud software provider. Shares rose as much as 10%.
The investment firm is talking to potential advisers about making a new offer to Blackbaud’s board, the people said, requesting anonymity while discussing confidential information. Clearlake already owns about 18.9% of Blackbaud’s stock, according to the filing.
While Clearlake has not yet approached Blackbaud with a proposal, the company has contacted banks and direct lenders about financing packages that could support a potential takeover of the company, the people said.
Considerations are still at an early stage and there is no certainty that Clearlake will decide to proceed with the transaction, the people said. A representative for Blackbaud in Charleston, South Carolina, declined to comment. Clearlake representatives did not immediately respond to requests for comment.
Blackbaud shares were down about 16% year-to-date before Thursday’s gains. Shares rose 6% to $77.46 at 12:31 p.m. Thursday in New York, giving the company a market value of $4 billion.
In March 2023, Blackbaud rejected Clearlake’s unsolicited cash offer of $71 per share, which it said at the time was “highly opportunistic” and significantly undervalued the “tangible momentum” in its business.
Founded in 1981, Blackbaud is a cloud software provider focused on the “community of social good,” according to its website. It works with non-profit organizations, foundations and educational institutions and operates in the USA, Australia, Canada, Costa Rica and the UK.
(Updates with trading in the first and fifth paragraphs)
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Published: April 12, 2024, 05:14 IST