Blackbaud Inc. is making its second acquisition of the year, as the Daniel Island software company looks to boost revenue and offer new services.
The Charleston-based company said Tuesday it is buying a New York technology business that works with charitable organizations that allocate donated money to various causes.
Blackbaud said Tuesday that it's buying MicroEdge LLC from two investment firms for $160 million in cash.
The sale is expected to close by the end of the year.
MicroEdge's software is aimed at helping with foundations and grant-making groups organize, simplify and measure their charitable giving.
"Combining our 33 years of research and development with MicroEdge's deep experience in these unique markets will position Blackbaud to expand its total addressable market, while offering an unprecedented set of technology solutions to address the needs of funders, nonprofits and corporations," said Blackbaud CEO Mike Gianoni said in a statement.
Blackbaud is the largest provider of software and services for nonprofit fundraising groups.
The MicoEdge purchase is the second for the company since the growth-focused Gianoni became CEO in January.
In June, Blackbaud spent $35 million in cash to buy WhippleHill Communications, a small New Hampshire software firm that caters exclusively to private elementary and high schools. That deal was its first acquisition in more than two years.
MicroEdge CEO Kristin Nimsger said her firm and Blackbaud target slightly different but complementary groups of customers.
"There are no two companies better positioned to connect these two segments of the market together, to drive significantly greater efficiency and collaboration, and to accelerate our goal of helping our mutual clients effectively measure the outcomes of their work," she said.
MicroEdge is a portfolio company of Vista Equity Partners and Bregal Sagemount.
Shares of Blackbaud edged up 43 cents, or about 1 percent, to close at $39.32 Tuesday.
Contact John McDermott at 937-5572.
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