Blackboard Hires Barclays to Evaluate Offers; Shares Surge
April 19, 2011, 5:29 PM EDTBy Douglas MacMillan
(Updates with closing share prices in sixth paragraph.)
April 19 (Bloomberg) -- Blackboard Inc., a maker of online educational courseware, said it hired Barclays Capital as its financial adviser after receiving unsolicited buyout offers. The shares surged 29 percent, the biggest gain since June 2004.
The sources of the buyout offers weren’t disclosed. Blackboard is evaluating the bids as well as interest from other potential acquirers, the company said in a statement.
“Our board is committed to fulfilling its fiduciary duties to act in the best interests of shareholders,” said Chief Executive Officer Michael Chasen in the statement. “We remain focused on our company’s strategic plan and are committed to delivering the highest quality products and sustained client satisfaction.”
Blackboard makes software that lets teachers post course materials, conduct discussions and make assignments online. Its customers include California State University, Chico, and the University of Arkansas at Little Rock.
In January, Pearson Plc paid $127 million to boost its stake in test-preparation service TutorVista, based in India. Last November, News Corp. paid $360 million for closely held Wireless Generation, a maker of Web-based tools for the classroom.
Blackboard, based in Washington, rose $10.75 to $47.91 at 4 p.m. New York time on the Nasdaq Stock Market. The gain was the stock’s biggest since June 18, 2004, the day the shares began trading after an initial public offering.
--Editors: Jillian Ward, Tom Giles
To contact the reporter on this story: Douglas MacMillan in San Francisco at Dmacmillan3@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.
