(Bloomberg) -- Clearlake Capital Group LP has made a sweetened bid to acquire Blackbaud Inc., offering $80 a share about a year after its last approach was rebuffed by the cloud software provider. 

The investment firm on Sunday sent a letter to the Blackbaud board with the non-binding offer, according to a filing Monday with the US Securities and Exchange Commission. The bid values the Charleston, South Carolina-based company at $4.13 billion based on 51.6 million shares outstanding, according to data compiled by Bloomberg.

Bloomberg News reported last week that Clearlake was talking to potential advisers about making the fresh offer. The firm already owns about 18% of Blackbaud’s outstanding stock, according to the filing.

Blackbaud rejected an unsolicited $71 per share cash offer from Clearlake in March 2023, which the company said at the time was “highly opportunistic” and significantly undervalued the “tangible momentum” in its business.

“The company continues to face substantial operational challenges that require transformational change and investment over many years,” Clearlake said in its filing. “We believe these challenges can practically only be addressed as a private company with the support of a strategic party or sponsor.”

The private equity firm said Blackbaud’s shares have “significantly underperformed” those of comparable software companies. Blackbaud shares have fallen around 9% this year. The stock was up 3% to $79.01 at 2:39 p.m. in New York on Monday.

Analysts believe that Clearlake may have to offer more to succeed with a deal for Blackbaud. 

“We think the improved financial profile of BLKB may warrant a higher takeout price,” analysts at Robert W. Baird & Co. wrote on Monday. “We could see this new $80/share offer as setting a potential floor near-term.”

In a separate note, analysts at Stifel Financial Corp. wrote that “applying multiples from Clearlake’s previous offer would result in a takeout price of ~$95-100/share.”

Founded in 1981, Blackbaud is a cloud software provider focused on “the social good community,” according to its website. It works with nonprofits, foundations and education institutions and has operations in the US, Australia, Canada, Costa Rica and UK.

California-headquartered Clearlake manages more than $75 billion in assets across private equity, credit and other strategies. It focuses on investments in the technology, industrials and consumer sectors.

Jefferies LLC, JPMorgan Chase & Co., Qatalyst Partners LP and Rothschild & Co. are advising Clearlake, according to the filing Monday.

(Updates with analyst comments from seventh paragraph.)

©2024 Bloomberg L.P.