Software Company Decides Not to Go Public Due to Concerns About Stock Market

Convio, a company that provides Web-based software for nonprofit organizations, has withdrawn its bid to go public, citing unfavorable market conditions.

The Austin, Tex., company, had filed a statement with the Securities and Exchange Commission in August 2007 announcing its intention to sell shares of common stock in an initial public offering.

“We subscribe to the philosophy that good companies don’t go public in bad markets,” says Gene Austin, the company’s chief executive. He says the company’s decision does not mean that it will never go public but rather that it will wait until financial markets improve to make such a decision.

Consolidation of Companies

Convio’s announcement comes during a period of significant change and consolidation in the nonprofit-software industry.

In June, Blackbaud solidified its dominant position in the field with its $46-million purchase of Kintera, Convio’s primary competition in the area of Web-based software.

When the Kintera buyout is complete, Blackbaud will have spent $137-million in recent acquisitions, including Campagne Associates, a fund-raising-software company it bought for $6-million in 2006, and last year’s purchases of Target Analytics, a research and consulting firm (for $60-million), and eTapestry, which helps charities manage donor records (for $25-million).

Last year, Convio bought one of its rivals, GetActive Software, a company in Berkeley, Calif., that also provided software to help charities raise money and conduct advocacy online.