Payments software provider EngageSmart is set to become a privately held company after entering into a definitive agreement with Vista Equity Partners in a cash transaction valued at approximately $4 billion.
Under the terms of the deal, shareholders will receive $23.00 per share in cash, representing a 23% premium to the stock's closing price on October 4.
The transaction, expected to close in the first quarter of 2024, will see affiliates of Vista hold about 65% of the outstanding equity, while General Atlantic, which owns a 52% stake in EngageSmart, will retain around 35%.
EngageSmart offers vertically tailored customer engagement software and integrated payment SaaS solutions.
Bob Bennett, CEO of EngageSmart, told investors that the company believes the partnership with Vista and General Atlantic will enable it to continue investing in innovation and people to drive growth.
Michael Fosnaugh, Co-Head of Vista's Flagship Fund and Senior Managing Director, called EngageSmart a “demonstrated leader in delivering mission-critical solutions for modern businesses and simplifying customer and client engagement for over a hundred thousand organizations.”
As part of the agreement, there is a 30-day "go-shop" period expiring on November 22, allowing the Special Committee and financial advisors to consider alternative acquisition proposals. However, there is no assurance that such a process will lead to a superior proposal.
Shares of EngageSmart climbed nearly 12% on Monday morning at $22.60.