Clearlake Capital Increases Stake in Blackbaud and Is Exploring Strategic Alternatives; FVE $70

Clearlake Capital originally disclosed a 12% stake in Blackbaud in June for investment purposes. After the market closed, Clearlake indicated it had increased its stake to 18%, to 9.8 million shares, and is now evaluating alternatives for its current and possible future investments in Blackbaud. Given that Clearlake recently took Cornerstone OnDemand private and was involved in the spin out of Constant Contact, we think its possible that the private equity firm is eyeing a complete leveraged buyout. Given Clearlake’s initial investment was disclosed when Blackbaud shares were around $65, it seems reasonable to assume with shares closing at $44 today that Clearlake believes it can unlock shareholder value through privatization.