Blackbaud Announces Acquisition of Campagne Associates

Business Wire, Jan 23, 2006

CHARLESTON, S.C. -- Blackbaud, Inc. (Nasdaq:BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, today announced that it has acquired the assets of Campagne Associates, Ltd., a privately held provider of fundraising software and services for nonprofit organizations. The purchase price for the acquisition was $6 million, all cash, with potential for additional amounts payable based upon certain performance-based metrics over the next two years.

Marc Chardon, President and CEO of Blackbaud Inc., stated, "We are excited about the acquisition of Campagne Associates, which brings more than 2,000 customers and 18 years of additional domain expertise to Blackbaud. Both companies share a similar goal - an intense focus on customer satisfaction and success. This acquisition allows us to use each firm's extensive market knowledge in a combined effort to ensure we deliver solutions that give our customers the ability to better support their missions."

With more than two decades of service to nonprofits and approximately 13,000 customers, Blackbaud provides technology solutions that help nonprofits raise money and operate more effectively. Organizations of all sizes rely on Blackbaud's integrated solutions to handle their critical fundraising efforts.

Blackbaud will continue to provide support for Campagne's GiftMaker Pro(TM) product, and current customers will be offered an attractive upgrade to Blackbaud's industry leading fundraising solution, The Raiser's Edge(R). In addition, Campagne's customers will have access to the rest of the Company's integrated product suite, the industry's broadest and deepest, including, The Financial Edge(TM), The Education Edge(TM), The Patron Edge(R), Blackbaud(R) NetCommunity(TM), The Information Edge(TM), WealthPoint(TM) and ProspectPoint(TM).

"Blackbaud is well known in the industry for having best-in-class products and great customer support," said Craig Ahlquist, co-founder of Campagne Associates. "Our combined experience and access to Blackbaud's broad suite of products will allow us to better serve our GiftMaker Pro customers for years to come. Ric Pratte and I are both pleased to be joining Blackbaud and are looking forward to playing a key role in directing this exciting new venture."

At this early stage, the Company does not expect the acquisition to have a material impact on its 2006 financial results. However, the Company will provide more specific commentary on the financial impact of the acquisition, along with overall 2006 financial guidance, on its upcoming fourth quarter and fiscal year 2005 earnings conference call. The Company intends to host its earnings call on February 16, 2006, and details for the call are provided in a press release dated January 11, 2006.

About Blackbaud, Inc.

Blackbaud is the leading global provider of software and related services designed specifically for nonprofit organizations. Approximately 13,000 organizations - including the American Red Cross, Bowdoin College, the Chesapeake Bay Foundation, the Crohn's & Colitis Foundation of America, the Detroit Zoological Society, Episcopal High School, Help the Aged, the New York Philharmonic and United Way of America - use Blackbaud products and consulting services for fundraising, financial management, business intelligence, and school administration. Blackbaud's solutions include The Raiser's Edge(R), The Financial Edge(TM), The Education Edge(TM), The Patron Edge(R), Blackbaud(R) NetCommunity(TM), The Information Edge(TM), WealthPoint(TM), and ProspectPoint(TM), as well as a wide range of consulting and educational services. Founded in 1981, Blackbaud is headquartered in Charleston, South Carolina, and has operations in Toronto, Ontario; Glasgow, Scotland; and Sydney, Australia. For more information, visit www.blackbaud.com.

Blackbaud, the Blackbaud logo, The Raiser's Edge, The Financial Edge, The Education Edge, The Patron Edge, Blackbaud NetCommunity, The Information Edge, WealthPoint and ProspectPoint are trademarks or registered trademarks of Blackbaud, Inc.

Forward-looking statements

Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: risks associated with acquisitions; risk associated with successful implementation of multiple integrated software products; lengthy sales and implementation cycles, particularly in larger organizations; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; adoption of our products and services by nonprofits; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risk associated with product concentration; economic conditions and seasonality; competition; risks associated with management of growth; technological changes that make our products and services less competitive; the ability to attract and retain key personnel; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge upon request from Blackbaud's investor relations department.