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BLACKBAUD COULD SELL EVERFI Featured

 Blackbaud is continuing what to do with EverFi, which it acquired in January 2022 for about $750 million in cash and stock. Steps considered by Blackbaud, whose CEO Michael Gianoni described Everfi as a “drag on revenue”, include divestiture.

Gianoni made his comments in the recent webcast for earnings for the second quarter ended June 30 for the nonprofit software company. Everfi, which represents about 8 percent of Blackbaud revenue. Everfi’s products are in financial education, workplace training and community education. When Blackbaud announced the deal more than two years ago it said Everfi would add $120 million to its annual revenue and had an annual growth rate “approaching 20 percent” and that it saw significant cross sell opportunities. Gianoni said during the webcast, “Everfi has faced a number of external challenges and while we have taken decisive actions, including changes to corporate sector leadership in divestiture of non-recurring components of the business, EVERFI continues to be a drag on Blackbaud's overall strong performance. For the recently ended quarter, net income was $21.8 million, ten times the $2.1 million a year ago. Revenue was $287.3 million for the quarter, an increase of 6 percent over slightly more than $271 million in last year’s corresponding period.

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