The NonProfit Times - July 1, 2008 - (Page 7)

BLACKBAUD’S BID Continued from page 1 mand from nonprofits for interoperability and an open approach to integration,” Austin continued. “We would like to see Blackbaud make their APIs freely available, following Convio and other leading vendors who have worked with clients and the market to drive improved results. Better data integration benefits the nonprofit market.” The e-letter comments brought a snicker from Blackbaud President and CEO Marc Chardon. Regarding the interoperability, he said that Blackbaud products can be customized and that the acquisitions work together in a “technology stack.” He took an only slightly veiled shot at Convio, which purchased rival GetActive Software for $18 million last year and is migrating GetActive clients to a Convio system. “The senior level people are still there,” Chardon said of the companies acquired by Blackbaud during the past two years and compared that to the GetActive acquisition by Convio where nearly all of the senior managers are gone. mostly overlaps with products they already have,” according to Schoenberg. Chardon disputes the contention, explaining that the Kintera Sphere® is an SaaS model that can’t be set up in-house, whereas Blackbaud’s NetCommunity™ can be operated from the charity’s offices. Chardon said that negotiations for Kintera were ongoing for “three or four months” prior to the tender offer. He declined to be specific regarding possible changes because the deal was not completed and Kintera was still a public company (NASDAQ), as is Blackbaud, and so Securities and Exchange Commission (SEC) rules prohibit such discussion. He could not comment on whether the layoffs at Kintera, announced a week before the offer, had anything to do with the negotiations. During its first-quarter conference call in early May, Kintera announced another round of layoffs, this time of about 14 percent. During the past two years, Kintera has reduced staff from less than 500 to an expected 240 after the latest layoffs, which are expected to save $1 million a quarter by the third quarter of this year. Blackbaud expects to finance the deal with cash and borrowings from its credit facility. Blackbaud’s acquisition of Kintera is structured as an all-cash tender offer for all of the shares of Kintera at a price of $1.12 per share, a 65-percent premium compared to its 68-cents a share close the day the acquisition offer was announced. Convio announced plans last August to go public and raise $86 million, which was expected in the first quarter of 2008 but has yet to take off. Austin told The NonProfit Times that while the initial public offering plan has not been pulled, he does not expect the stock sale to occur this year. Kintera’s principal offering is the online Sphere® technology platform, which Blackbaud’s Bid, page 25 Marc Chardon Kintera will continue to be led by current President and Chief Executive Officer Richard LaBarbera. Kintera operations will continue to be directed from its existing offices in San Diego. For those who see the acquisition of Kintera as leaving just two major vendors of online fundraising communication, Chardon described the marketplace as “the middle of a growth cycle.” That’s not how other competitors see it. “Blackbaud’s $46 million acquisition of Kintera, announced May 29th, continues Blackbaud’s efforts to eliminate competition and monopolize the nonprofit software market.The purchase, which is likely to be good for both Blackbaud and Kintera shareholders, is likely to lead to diminished software options for the nonprofit community,” according to a statement from Douglas Schoenberg, chief executive officer of SofterWare, parent company of DonorPerfect Fundraising Software, a Blackbaud competitor, based in Horsham, Pa. “It seems unlikely that Blackbaud will be interested in much of Kintera’s constituent management technology, which The concept behind Callcenter Software for Non-proﬁts Whether you measure productivity by contacts-per-hour, dollars-per-hour, pledges-per-hour, or any other metric, DialVision gives you the ultimate combination of maximized performance and ﬂexibility. DialVision is web-based, so you can support multiple call centers or remote callers. Rent DialVision and we’ll host it on our servers, or you can purchase the system. Our expert support staff can manage the technology, and is here to help 24x7 – allowing you to focus on your campaigns. It’s fast and ﬁscally brilliant. Contact Tracy Jones today at 888-666-6347 ext 101. You’ll see that it’s not rocket science!! MoonFire Corporation | 888.666.6347 | www.DialVision.com/NPT JULY 1, 2008 THE NONPROFIT TIMES www.nptimes.com 7 http://www.DialVision.com/NPT http://www.DialVision.com/NPT http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - July 1, 2008

The NonProfit Times - July 1, 2008 Time to Let GO Sparks Flying From Blackbaud's Bid For Kintera Holiday Jeer Contents Who...When...Where...How...What? The Wrong Arguments Calendar Measure the Unmeasureable Getting Good Advice We Barely Got to Know You Special Report: Giving USA Shows Bequests, Foundations Boosted Otherwise Flat Giving to 306 Billion Dollars National Benchmarking Nothing Is Forever Diversified Planet Business Briefs NPT Jobs Resource Directory Bridge Map Insert

The NonProfit Times - July 1, 2008

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