By Chris Wack
EngageSmart shares were up 12% to $22.61 in premarket trading Monday after the company confirmed it is being bought by an affiliate of Vista Equity Partners, in an all-cash transaction valued at $4 billion, or $23 a share.
The Wall Street Journal reported the deal for the business-software company earlier Monday morning, citing people familiar with the situation.
The purchase price represents a premium of 23% to the unaffected closing price of EngageSmart’s stock on Oct. 4. The stock closed Friday at $20.20.
Upon completion of the transaction, affiliates of Vista will hold 65%, and affiliates of General Atlantic will hold 35% of the outstanding equity. EngageSmart is currently controlled by investment firm General Atlantic.
The deal, which is sizable at a time when many private-equity firms are sitting on the sidelines, is expected to close in the first quarter of 2024.
When the merger is complete, EngageSmart will become a privately held company and EngageSmart common stock will no longer be listed on any public market.
The agreement includes a 30-day “go-shop” period that will expire on Nov. 22, which permits the company to solicit and consider alternative acquisition proposals.
Write to Chris Wack at [email protected]
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