Blackbaud acquires Target Software and Target Analysis Group

Share this content:

Nonprofit organization software provider Blackbaud Inc. recently bought privately owned Target Software Inc. and Target Analysis Group Inc., sister companies based in Cambridge, MA.

Under the terms of the agreement, Blackbaud paid an aggregate purchase price for the companies of approximately $60 million, plus an additional amount of up to $2.4 million under a one-year earn-out arrangement. Investment bank Petsky Prunier, New York, represented Target Software and Target Analysis Group in the deal.

The acquisition is part of Blackbaud's goal to provide a complete solution for meeting the fundraising and direct marketing needs of the nonprofit sector, according to the company.

The company will also be using the expansion to cross-sell its solutions to customers of all sizes in a push to expand market opportunity.

Target Software is a provider of large-scale database management and sophisticated donor relationship software solutions for national and regional nonprofit fundraising organizations.

Clients of the company include high-volume direct response marketers including American Diabetes Association, Children's Cancer Research Fund, Greenpeace USA, Massachusetts Audubon Society, Special Olympics and World Wildlife Fund.

Target Analysis Group delivers data mining, predictive modeling, and unique collaborative benchmarking services to hundreds of nonprofits of all sizes. Clients include American Civil Liberties Union, American Heart Association, Doctors Without Borders, Easter Seals and Oxfam America.

Target Analysis Group and Target Software will continue operations as wholly-owned subsidiaries in Cambridge, MA, under current president Lee Gartley, who will also join the Blackbaud executive team. Chuck Longfield, Target's founder and CEO, will become Blackbaud's chief scientist.

Clients of Blackbaud total more than 15,000 organizations and include the American Red Cross, Bowdoin College, the Detroit Zoological Society, the Lincoln Center and United Way of America.

Blackbaud, Charleston, SC, also announced that it expects to report fourth quarter total revenue of $49.5 million to $49.6 million and non-GAAP operating income of $14.1 million to $14.2 million. The company expected license revenue is $8.2 million, slightly below the company's previously issued guidance range.

Blackbaud financed the acquisition through a combination of cash and borrowings from its credit facility.

Before taking into consideration the financial impact associated with the Target acquisitions, the company is reiterating its previously stated forecast of 13 percent to 14 percent revenue growth in 2007.

Blackbaud will provide detailed fourth quarter financial results on February 5, 2007. At this time Blackbaud will also provide detailed first quarter and full year 2007 guidance, including the expected impact of the Target acquisition.

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above