News

Blackbaud BLKB announced that it received an unsolicited, non-binding proposal from a current stockholder of the company — Clearlake Capital Group, L.P. The offer was made to acquire all the outstanding shares of the company for $80 per share in cash.

Clearlake Capital is a private equity firm which had initially invested in Blackbaud in 2020. It now holds an 18.3% ownership position in the business. Last year, Clearlake Capital made an all-cash offer to acquire Blackbaud for $71 per share. However, Blackbaud rejected the offer.

Blackbaud is a leading cloud software company working for social causes. The company combines technology and expertise to help organizations achieve their missions. It offers a wide range of cloud-based and on-premise software solutions and related services for organizations of all sizes, including fundraising, marketing, advocacy, customer relationship management etc.

Blackbaud, Inc. Price and Consensus

The company’s cloud-based suite of applications demonstrates strong growth momentum driven by the transition of organizations from the traditional revenue-based model to the cloud-based subscription model. The company had more than 40,000 customers under contract in 2023.

The company is focusing on providing cloud software solutions and data-driven decisions powered by artificial intelligence, machine learning, cognitive technology, predictive analytics and other advanced technologies. It remains active on the acquisition front and chooses companies that can be easily integrated within its existing or new product lines.

In March, the company announced that it was contemplating to buyback 7% to 10% of shares through the end of 2024. These repurchases will be executed through accelerated share repurchase plans, block trades, and open market purchases as part of the earlier announced $500 million buyback authorization.

BLKB currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 18% compared with the sub-industry’s growth of 41.8% in the past year.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Synopsys SNPS, Pinterest PINS and Iridium Communications IRDM. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Synopsys’ 2024 earnings per share (EPS) has decreased 0.7% in the past 60 days to $13.28. SNPS’s long-term earnings growth rate is 17.5%.

Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 56.1% in the past year.

The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34.

Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13% in the past year.

The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 213% in the past 60 days to 72 cents.

Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, delivering an average earnings surprise of 91.7%. Shares of IRDM have lost 56.1% in the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.