In response to the Black Lives Matter movement and social unrest caused by the Covid-19 pandemic, many businesses are investing more in corporate social responsibility (CSR) and environmental, social and governance (ESG). However, these companies can’t always create a better social impact on their own. Many have enlisted the help of companies like Blackbaud, a cloud software startup that enables enterprises and organizations to create social good.
In order to strengthen its social impact tech, Blackbaud announced Monday the acquisition of Washington, D.C.-based social impact technology company EVERFI for $750 million in cash and stock. Together, the two companies hope to help organizations meet and exceed diversity, equity and inclusion (DEI) and positive social impact goals through software, education and community engagement solutions.
“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, president and CEO of Blackbaud, said in a statement. “Blackbaud and EVERFI will work together to realize a shared vision of measurable social impact through world-class technology.”
EVERFI calls itself a pioneer of the new impact-as-a-service field, which it defines as “software that enables organizations to tackle and report on social impact initiatives at scale through data-driven solutions.” The company helps organizations across the private, public and social sectors respond to today’s social challenges. Its technology and learning platform offers workplace training and financial, community and K-12 educational tools.
EVERFI’s goal is to empower organizations with education in order to improve their social impact both internally and externally. For example, with EVERFI companies can offer diversity training in order to make workplaces more inclusive. Nonprofits can also access free online courses in health and wellness, mental health, DEI, digital wellness and other social impact educational programs.
“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’s software powers some of the largest ESG and CSR initiatives in the world, and this alignment will drive impact for millions of learners every year.”
Based in Charleston, South Carolina, Blackbaud creates cloud software solutions for fundraising, marketing, finance, grantmaking, analytics and other tools nonprofits and social good organizations need to make positive social impacts. The company calls itself “the world’s leading cloud software company powering social good” and has millions of users in more than 100 countries.
The acquisition is expected to add $120 million to Blackbaud’s 2022 revenue, with an annual growth rate of approximately 20 percent. It’s also expected to increase cross-sell opportunities. Both companies are also hiring with four positions available on Blackbaud’s sales team and more than 30 positions across departments at EVERFI.
Blackbaud isn’t the only social impact company expanding to the D.C. area. Just last month, diverse talent recruitment platform Tribaja opened an office in Richmond.