Blackbaud Plans Stock Repurchase Program

By Bobby Samwell • Monday, March 04 15:25 • Permanent Link

Blackbaud (NASDAQ: BLKB) has announced its intention to repurchase 7% to 10% of the company's common stock through the end of 2024. The company has entered into an accelerated share repurchase ("ASR") agreement with Bank of America, N.A., to repurchase $200 million of its common stock. Since December 2023, Blackbaud has already repurchased approximately $77 million of its common stock, excluding the ASR announced today.

Of the $77 million repurchased, $41 million was bought back prior to the expansion and replenishment of the board authorization on January 17th. The remaining $36 million counts against the current $500 million authorization.

Blackbaud's president, CEO, and vice chairman of the board, Mike Gianoni, expressed confidence in the company and its future value creation, stating, "We believe our stock is undervalued and does not represent Blackbaud’s significant market opportunities. We are excited about Blackbaud’s long-term growth prospects and committed to enhancing shareholder value."

The ASR and subsequent repurchases under the $500 million stock repurchase authorization will be funded through cash on hand, operating cash flow, and, if needed, borrowings under the company’s existing credit facility.

The company's participation at investor conferences on March 4 and 5 included the posting of presentation materials to Blackbaud's investor webpage and filing as a Form 8-K with the Securities and Exchange Commission. The associated webcasts can also be accessed on the investor relations section of Blackbaud’s website.

Blackbaud is the world’s leading software provider exclusively dedicated to powering social impact, serving the nonprofit and education sectors, companies committed to social responsibility, and individual change makers. With millions of users and over $100 billion raised, granted, or managed through its platforms every year, Blackbaud’s solutions are unleashing the potential of the people and organizations who change the world.

As a result of these announcements, the company's shares have moved 3.2% on the market, and are now trading at a price of $72.64. For the full picture, make sure to review Blackbaud's 8-K report.

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