Blackbaud (NASDAQ: BLKB), a provider of software for powering social impact, said March 4, 2024, it intends to repurchase 7 percent to 10 percent of the company's common stock through the end of 2024.
Officials said the repurchases will be made through a combination of accelerated share repurchase plans, block trades, and open market purchases as part of the company's previously announced $500 million share repurchase authorization.
Consistent with the commitment, the Charleston, South Carolina-based company has entered into an Accelerated Share Repurchase ("ASR") agreement with Bank of America, N.A., to repurchase $200 million of the company's common stock.
Since December 2023, the company has repurchased approximately $77 million of Blackbaud common stock, excluding the ASR announced March 4, 2024.
Of the $77 million, $41 million was repurchased prior to the expansion and replenishment of the board authorization on Jan. 17, with the remaining $36 million counting against the current $500 million authorization.
"Our five-point operating plan is driving meaningful improvements in our operating and financial results and fueling significant free cash flow,” said Mike Gianoni, president, Blackbaud’s CEO and vice chairman of the board.
Gianoni added, “The execution on our increased share repurchase authorization reflects our confidence in Blackbaud and upside value creation ahead. 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."
Officials said the ASR and subsequent repurchases under the $500 million stock repurchase authorization will be funded through cash on hand, operating cash flow, and to the extent needed, borrowings under the company's existing credit facility.
In connection with the company's participation at investor conferences on March 4 and 5, presentation materials have been posted to Blackbaud's investor webpage and filed 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's software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management.
With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, officials said Blackbaud's solutions are unleashing the potential of the people and organizations who change the world.
Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers, and Forbes' list of America's Best Employers.
A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries.