D.C. ed-tech company EverFi Inc. has been sold for $750 million, less than six months after dispatching its higher-education business for $100 million.
Blackbaud Inc. (NASDAQ: BLKB), a Charleston, South Carolina, cloud software company, announced Monday it bought EverFi in a cash-and-stock deal “subject to certain customary adjustments.” EverFi is expected to add an estimated $120 million in 2022 revenue to Blackbaud’s balance sheet.
Per the terms of the deal, EverFi shareholders will receive $450 million in cash in 3,844,423 shares of Blackbaud common stock, valued at roughly $300 million. Blackbaud financed the cash with a combination of cash on hand and new borrowing.
“Blackbaud and EverFi have similar cultures and a strong sense of purpose,” EverFi CEO Tom Davidson said in a statement. “Together we offer an unparalleled commitment to customers, innovation and data-driven social impact, making us the one distinctive leader in the social impact space."
EverFi will remain headquartered in the District and maintain its offices in the United Kingdom while continuing to support its remote employees, a spokeswoman said. The local company, which has raised $251.6 million since its 2008 founding, expanded in 2019 into 58,000 square feet at 2300 N St. NW.
EverFi describes itself as an “Impact-as-a-Service" provider, reaching more 45 million learners across the globe, per a release, “in addition to delivering critical insight to its corporate partners so they can measure and amplify the impact of the educational programs they are driving in support of their environmental, social and governance (ESG) and corporate social responsibility (CSR) goals.”
“As companies continue to invest further in ESG and CSR programs to both give back and meet regulatory demands, they need a partner who can help connect their philanthropic goals to meaningful social impact opportunities,” Mike Gianoni, Blackbaud's president and CEO, said in a statement. “Blackbaud and EverFi will work together to realize a shared vision of measurable social impact through world-class technology.”
In July, EverFi sold its higher education segment — which includes online training programs on alcohol abuse, sexual assault, mental health and diversity used by colleges and universities — to Tampa, Florida's Vector Solutions Inc. for $100 million. At the time, EverFi said unloading that business unit would allow it to refocus on its skills-based education courses, including online programs focused on the K-12 market.
Goldman, Sachs & Co. served as exclusive financial adviser to EverFi, and DLA Piper served as legal counsel. Sidley Austin LLP served as legal counsel to Blackbaud.
