EngageSmart acquired by Vista Equity Partners in $4bn cash deal

EngageSmart, Inc., a provider of vertically tailored customer engagement software and integrated payments solutions, has announced the completion of its acquisition by an affiliate of Vista Equity Partners, a leading global investment firm in enterprise software, data, and technology-enabled businesses, for $4 billion.

The acquisition was made at $23 per share in cash. This transaction brings EngageSmart‘s journey as a publicly traded company to an end, as its common stock ceased trading on the New York Stock Exchange.

Bob Bennett, CEO of EngageSmart, expressed enthusiasm about the company’s new chapter as a privately held entity. He emphasized the benefits of Vista’s deep expertise and the continued partnership with General Atlantic. Bennett recognized his team’s dedication and focus on delivering high-quality digital engagement software with integrated payments.

Vista Equity Partners Completes Acquisition of EngageSmart for $23 Per Share

Michael Fosnaugh, Co-Head of Vista’s Flagship Fund and Senior Managing Director, noted EngageSmart’s track record of innovation and product leadership. Jeff Wilson, Managing Director at Vista, echoed this sentiment, affirming their commitment to EngageSmart’s vision and customer-focused mission.

EngageSmart is known for its vertically tailored solutions, serving over 119,600 customers across various core verticals. Its products like SimplePractice, InvoiceCloud, and DonorDrive are pivotal in driving digital adoption and self-service in sectors like Health & Wellness, Government, Utilities, Financial Services, and Giving.

The transaction received approval from EngageSmart stockholders at a special meeting held on January 23, 2024, underlining the stakeholders’ confidence in the deal.

The acquisition process involved several key financial and legal advisors, including Evercore, Goldman Sachs & Co. LLC, Paul, Weiss, Rifkind, Wharton & Garrison LLP, BofA Securities, J.P. Morgan Securities LLC, and Kirkland & Ellis LLP, each playing a crucial role in facilitating this major deal.

The acquisition of EngageSmart by Vista Equity Partners is a strategic move that showcases the growing importance of specialized software solutions in the modern business landscape. EngageSmart’s focus on customer engagement and integrated payments positions it well for continued growth and innovation under Vista’s stewardship. This acquisition highlights the ongoing consolidation trend in the tech sector, driven by the need for comprehensive and integrated software solutions.