Larger opposition to buy Saf-T-Net

Saf-T-Net, a fast expanding Raleigh association whose record enables schools to promulgate time-sensitive report to employees and parents, is being acquired by a incomparable rival.

Publicly traded Blackboard, that is formed in Washington voiced Monday that it has concluded to take Saf-T-Net for $33 million in cash. The understanding is approaching to be finished this month.

The understanding combines the dual largest competitors in the market, pronounced Robert Bruce, co-founder and CEO of Saf-T-Net. The company, that is secretly hold , has 47 employees in Raleigh and 65 overall. Blackboards Blackboard Connect product generates the majority income by far of all the competitors, whilst Saf-T-Nets AlertNow record has the majority commercial operation -- about 2,000.

"The synergies of these dual companies are only fantastic," Bruce said. AlertNow delivers voice, e-mail and content messages to educators and parents, trimming from the slight to puncture messages.

Blackboard Connect is one of a series of products Blackboard offers to educators, together with program used for training and guidance online, and accounts for rounded off fifteen percent of the companys sum revenue. Blackboard boasts that the the largest record association dedicated to the preparation market, together with colleges and universities. It has 1,100 employees and generated $377 million in income last year, up twenty-one percent.

Blackboard plans to keep all of Saf-T-Nets employees and will say the companys participation in Raleigh. Saf-T-Now will turn piece of Blackboards Blackboard Connect division, whilst the AlertNow product will be used to raise Blackboard Connect.

AlertNow has a little facilities that Blackboard Connect lacks, and vice-versa. For example, AlertNow, or example, can interpret messages in to mixed languages.

Michael Stanton, Blackboards comparison clamp boss of finance, pronounced in a phone talk that Raleigh is a place where Blackboard anticipates expanding since of the areas tasteful work pool, auspicious commercial operation meridian and reduce handling costs compared to Washington.

"Its an area where, economically, it obviously creates clarity to staff up and grow," Stanton said. "I couldnt discuss it you if it is going to be 10 percent or twenty percent over the subsequent twelve months, but we would design to staff up."

Saf-T-Net generated $9.8 million in income in 2009, Stanton said. But underneath GAAP, or in all usurpation accounting principles, Saf-T-Net will minister $5.5 million to Blackboards income this year, presumption the squeeze is finished in late March.

Saf-T-Net isnt nonetheless essential but has been relocating in that direction, Stanton said. Blackboard projects the merger will intermix the gain per share this year and will have a certain outcome subsequent year, on a non-GAAP basis.

Saf-T-Nets income jumped 70 percent last year, pronounced Bruce, the CEO, who credited the strength of the product and the companys concentration on patron service.

Switching gears

The association began in 1996 as a interpretation backup association but switched gears when the propagandize commercial operation pronounced they indispensable a improved approach to promulgate with parents.

Bruce pronounced he and co-founder Howard Udell, Saf-T-Nows chairman, will sojourn as consultants by a passing from one to another duration but in conclusion plan to leave. Bruce declined to criticism on his plans. Bruce pronounced that he and Udellwerent looking a customer when Blackboards CEO, Michael Chasen, instituted hit last summer. "Its been about a seven-month process," he said.

david.ranii or 919-829-4877