Cloud software giant Blackbaud has acquired social impact technology company Everfi for $750 million in a cash and stock deal.
Blackbaud -- which provides cloud software services to nonprofits, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations and companies -- will give Everfi shareholders about $450 million in cash and $300 million worth of company common stock.
The Washington D.C.-based Everfi specializes in "impact-as-a-service," providing cloud-based software and other tools to private, public and social sector organizations. Everfi also works with corporations on environmental, social and governance (ESG) and corporate social responsibility (CSR) goals.
Globally, the company has "reached" more than 45 million people through its technology and learning platform.
Mike Gianoni, president and CEO of Blackbaud, said companies investing in ESG and CSR programs "need a partner who can help connect their philanthropic goals to meaningful social impact opportunities."
"With the addition of EVERFI, and our existing expertise and technology, Blackbaud will be the leading partner to support corporations in their community education, volunteering, grantmaking and philanthropy programs. Blackbaud and EVERFI will work together to realize a shared vision of measurable social impact through world-class technology," Gianoni said.
"With this acquisition, we're connecting EVERFI's Impact-as-a-Service expertise to Blackbaud's robust offerings for companies. The end result will be a comprehensive set of solutions that will help companies drive greater impact for their ESG and CSR goals, while serving K-12 learners with educational programs and meaningful outcomes that build a better world. We're thrilled to welcome the EVERFI team to Blackbaud."
Blackbaud explained that the acquisition will expand their total addressable market to more than $20 billion thanks to more corporate relationships. Everfi will add about $120 million in revenue for 2022 with a year-over-year growth of nearly 20%.
Everfi CEO Tom Davidson said the company's software powers "some of the largest ESG and CSR initiatives in the world" and added that the acquisition will help "drive impact for millions of learners every year."
"Blackbaud and EVERFI have similar cultures and a strong sense of purpose," Davidson said. "Together we offer an unparalleled commitment to customers, innovation and data-driven social impact, making us the one distinctive leader in the social impact space."