EngageSmart to be bought for $4 billion in cash by Vista Equity Partners

EngageSmart Inc.
ESMT,
+11.88%
confirmed Monday that it was being acquired by Vista Equity Partners in a all-cash deal valued at $4 billion. Under terms of the deal, EngageSmart shareholders will receive $23 for each EngageSmart share they own, which represents a 13.9% premium to Friday’s closing price of $20.20. The stock has rallied 10.1% in premarket trading prior to a trading halt for news, after The Wall Street Journal reported that a deal was close, and could be announced as early as Monday. The deal, which includes a 30-day “go shop” period in which EngageSmart can solicit other buyout bids, is expected to close in the first quarter of 2024. The stock has rallied 9.9% over the past three months through Friday, while the S&P 500
SPX,
-0.17%
has lost 6.9%.