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Blackbaud (BLKB) Receives Clearlake Letter After Bid Rejection
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Blackbaud (BLKB - Free Report) recently received a letter from Clearlake Capital Group, L.P following the rejection of the latter's acquisition proposal.
In the letter, Clearlake stated it was “disappointed” that Blackbaud’s board rejected its “highly attractive” takeover proposal. The company has reiterated its offer of $71.00 per share in cash.
Clearlake also added that given the current macroeconomic environment, many enterprise software companies have a challenging future ahead. Clearlake believes that Blackbaud should explore strategic alternatives to face current challenges and maximize shareholder value. Clearlake, Blackbaud’s largest shareholder, has tried unsuccessfully to acquire the company over the past few months.
A few days back, Clearlake had submitted a takeover proposal to Blackbaud to acquire all the shares of the company for $71.00 per share in an all cash deal. Blackbaud’s board of directors unanimously rejected the proposal after a thorough review as the proposal significantly undervalued Blackbaud. The board further added that the Clearlake proposal is “highly opportunistic” and not in the best interest of stockholders. Blackbaud added that the proposal also does not take into consideration the “tangible momentum” in its business.
The company had carried out a review of the acquisition proposal against the company’s recently concluded internal analysis, in consultation with independent legal and financial advisors.
Headquartered in Charleston, SC, Blackbaud is a leading cloud software company working for social causes. The company combines technology and expertise to help organizations achieve their missions.
Blackbaud’s performance is driven by higher contractual recurring revenues owing to synergies from the previous acquisition of EVERFI. Increasing customer renewal rates and booking coupled with frequent product launches bode well. Growing demand for cloud-based applications is likely to act as another tailwind.
The company’s efforts to return capital to its shareholders through share repurchases and deleveraging augur well in the long term. BLKB’s margins are likely to improve owing to cost control and operational improvements.
For 2023, Blackbaud expects non-GAAP revenues between $1.08 billion and $1.11 billion. The company projects non-GAAP adjusted EBITDA margin in the range of 29.5-30.5%. Non-GAAP earnings per share are expected to be between $3.30 and $3.60. Non-GAAP adjusted free cash flow is forecast in the range of $170-$190 million.
Blackbaud currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 10.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 17% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 71.6% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings is pegged at $1.35 per share, rising 66.7% in the past 60 days.
Pegasystems’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of the company have declined 43% in the past year.
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Blackbaud (BLKB) Receives Clearlake Letter After Bid Rejection
Blackbaud (BLKB - Free Report) recently received a letter from Clearlake Capital Group, L.P following the rejection of the latter's acquisition proposal.
In the letter, Clearlake stated it was “disappointed” that Blackbaud’s board rejected its “highly attractive” takeover proposal. The company has reiterated its offer of $71.00 per share in cash.
Clearlake also added that given the current macroeconomic environment, many enterprise software companies have a challenging future ahead. Clearlake believes that Blackbaud should explore strategic alternatives to face current challenges and maximize shareholder value. Clearlake, Blackbaud’s largest shareholder, has tried unsuccessfully to acquire the company over the past few months.
A few days back, Clearlake had submitted a takeover proposal to Blackbaud to acquire all the shares of the company for $71.00 per share in an all cash deal.
Blackbaud’s board of directors unanimously rejected the proposal after a thorough review as the proposal significantly undervalued Blackbaud. The board further added that the Clearlake proposal is “highly opportunistic” and not in the best interest of stockholders. Blackbaud added that the proposal also does not take into consideration the “tangible momentum” in its business.
Blackbaud, Inc. Price and Consensus
Blackbaud, Inc. price-consensus-chart | Blackbaud, Inc. Quote
The company had carried out a review of the acquisition proposal against the company’s recently concluded internal analysis, in consultation with independent legal and financial advisors.
Headquartered in Charleston, SC, Blackbaud is a leading cloud software company working for social causes. The company combines technology and expertise to help organizations achieve their missions.
Blackbaud’s performance is driven by higher contractual recurring revenues owing to synergies from the previous acquisition of EVERFI. Increasing customer renewal rates and booking coupled with frequent product launches bode well. Growing demand for cloud-based applications is likely to act as another tailwind.
The company’s efforts to return capital to its shareholders through share repurchases and deleveraging augur well in the long term. BLKB’s margins are likely to improve owing to cost control and operational improvements.
For 2023, Blackbaud expects non-GAAP revenues between $1.08 billion and $1.11 billion. The company projects non-GAAP adjusted EBITDA margin in the range of 29.5-30.5%. Non-GAAP earnings per share are expected to be between $3.30 and $3.60. Non-GAAP adjusted free cash flow is forecast in the range of $170-$190 million.
Blackbaud currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - Free Report) , each presently sporting 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 Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 10.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 17% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 71.6% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings is pegged at $1.35 per share, rising 66.7% in the past 60 days.
Pegasystems’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of the company have declined 43% in the past year.