The North Charleston startup Good Done Great has been acquired by a competitor from the Dallas area for an undisclosed sum, but the firm says it'll stay in the Lowcountry.
The sale of the company to Plano, Texas-based YourCause is one of the first to flow from the region's technology sector this year. The deal combines two firms that build software to manage corporations' philanthropic efforts.
Good Done Great chief executive David Barach says the startup's roughly 50 employees will be retained, including about 30 at Faber Place in North Charleston.
Barach says Good Done Great, which was targeting $5 million in sales this year, had viewed YourCause as its primary competition. The two companies did similar work processing donations and managing initiatives like employee gift matches, though YourCause had roughly twice as many employees.
Terms of the deal weren't disclosed, but the acquisition appeared to come on the heels of an investment from Providence Equity Partners. The New York-based private equity firm listed YourCause in its portfolio earlier this year. Providence didn't respond to a request for comment.
"They really are our top competitors, and so basically, we came to the decision that it just made more sense us to do this together than to do it separately," Barach said. "It's a good way for us to continue our mission on a larger scale."
YourCause couldn't be reached for comment. In a statement, the company said it would continue to support Good Done Great's software and that it plans to expand its offerings in the next few months.
Both firms say they've targeted large corporations and processed tens of millions of dollars of gifts from their employees. Before the acquisition, Good Done Great said it had deals with companies like Home Depot and Nestle. YourCause, for its part, claims customers like AT&T, Best Buy and Dell.
"Throughout the years, we have been extremely fortunate to partner with incredible companies who are true leaders in philanthropy," YourCause CEO Matt Combs said in a statement. "With our combined experience and capabilities, we’re looking forward to expediting our mission and commitment to this space and all those for whom it touches."
The acquisition makes eight-year-old Good Done Great one of the first startups in the Lowcountry to change hands this year. It joins Blue Acorn, a firm that designs e-commerce websites, which was acquired in April by a private-equity firm for an undisclosed sum.
And the latest sale adds to a steady line of local tech companies that have found buyers in recent years.
Last year, the credit-card comparison site CompareCards was purchased in a deal valued at roughly $104 million, and PeopleMatter, a human-resources startup, was sold to Virginia-based Snagajob. In 2015, the digital advertising company PureCars nabbed $125 million, and the core business of the software services firm SPARC fetched $53 million.