Shares of cloud-computing provider Blackbaud (NASDAQ: BLKB) surged by more than 10% in today’s trading on Monday after the company received a takeover offer from Clearlake Capital to buy the company at $71 per share in cash, indicating a premium of 22.8% to BLKB’s closing price as on March 24.
This acquisition price of $71 per share values Blackbaud at around $3.78 billion. Currently, Clearlake Capital has a stake of 18.3% in Blackbaud after the company adopted a “poison pill” in October last year that would prevent any entity from acquiring a more than 20% stake in Blackbaud.
Clearlake Capital is an investment firm founded in 2006 that currently has over $70 billion of assets under management. Clearlake stated that it expected Blackbaud “to undertake a thorough strategic review process with the assistance of its selected advisors, which we anticipate would culminate in a sale transaction to a strategic or financial partner and would maximize stockholder value.” However, Blackbaud has rejected the offer, stating that it significantly undervalues the company.
Year-to-date, BLKB stock has declined by 3.4%.
