Blackbaud filed a Form 8-K with the United States Securities and Exchange Commission, announcing a material pre-tax noncash impairment charge of up to approximately $415 million. This charge is related to its EVERFI asset group and will be recorded during the fourth quarter of 2024.
The impairment charge was deemed necessary as EVERFI has been performing below expectations, leading Blackbaud to consider a range of strategic alternatives, including a potential divestiture of the business. This financial adjustment reflects the company's ongoing evaluation of its portfolio and its commitment to addressing underperforming assets.
Blackbaud emphasized that its core business remains strong and focused on empowering social impact globally. The company plans to provide further updates as it determines its long-term strategic approach to the EVERFI business, indicating a clear path towards resolving the drag from this segment.
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