In a decisive move, Blackbaud Inc. (NASDAQ: NASDAQ:BLKB), a cloud software company, has rejected a buyout proposal from private equity firm Clearlake Capital Group, L.P. The bid to acquire all outstanding shares of Blackbaud at $80.00 per share in cash was deemed insufficient by the company's Board of Directors. The decision was announced today, following a unanimous conclusion by the Blackbaud Board that the offer significantly undervalued the company.
The rejection of the proposal, initially submitted by Clearlake on April 14, 2024, was communicated through a formal letter addressed to Clearlake's Co-Founder and Managing Partner, Behdad Eghbali. In the letter, Blackbaud's leadership, including Chairman Andrew Leitch and President and CEO Michael Gianoni, expressed confidence in the company's strategic business plan and its potential to generate sustainable value for shareholders that surpasses the offered price.
Blackbaud's Board, after consulting with independent financial and legal advisors, has taken a firm stance on the future financial prospects of the company, believing that the execution of its current business strategy will yield greater returns than the proposed acquisition price. This move underscores the Board's commitment to acting in the best interests of all Blackbaud stockholders.
The letter, which is part of the Current Report on Form 8-K filed with the SEC, emphasizes the Board's fiduciary responsibility to its shareholders and its focus on long-term value creation. The company has made it clear that the information provided in the 8-K filing, including the letter as Exhibit 99.1, is not to be considered filed for purposes of liability under the Securities Exchange Act of 1934, nor is it to be incorporated by reference in any subsequent SEC filings.
This development marks a significant moment for Blackbaud as it navigates its future in the competitive cloud software market. The company's resolution to decline Clearlake's offer reflects a strong belief in its own growth trajectory and strategic initiatives. The information disclosed is based on the statement from the press release.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.