Date Posted: 6/3/2008
Kintera shares skyrocket after acquisition news
Kintera shares jump after $46M Blackbaud buyout news; analyst says deal ends 'depressing run'
NEW YORK (AP) -- Shares of Kintera Inc. skyrocketed Friday after Blackbaud Inc. said it will pay a premium of $46 million to buy the company, which makes software for nonprofit and government organizations.
The stock rose 40 cents, or 58.8 percent, to $1.08.
Shares of Charleston, S.C.-based Blackbaud, which also makes software for nonprofits, fell 90 cents, or 3.7 percent, to $23.66.
The all-cash deal, worth $1.12 per share, represents a 65 percent premium over Kintera's closing price of 68 cents per share Thursday.
Roth Capital Partners analyst Nathan Schneiderman said the deal likely ends Kintera's "depressing run as a public company" and that the purchase price is "attractive as one could hope for under the circumstances."
The deal for the San Diego-based company is fairly priced due to drops in Kintera's revenue, high cost structure and "significant" operating losses, among other items, he said.
Other bids are not likely, he said, and the acquisition will probably take place this summer.
Schneiderman kept his "Hold" rating and $1.12 price target on Kintera, but warned a key risk is that shareholders do not approve the buyout.
Representatives for Kintera and Blackbaud were not immediately available to comment.
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