EngageSmart, which provides SaaS solutions for invoicing, payments, and health practice management, announced terms for its IPO on Monday.
The Braintree, MA-based company plans to raise $349 million by offering 14.6 million shares (11% insider) at a price range of $23 to $25. New investor Dragoneer Investment Group has indicated on 2.1 million shares, or 14% of the offering. At the midpoint of the proposed range, EngageSmart would command a fully diluted market value of $4.1 billion.
EngageSmart provides single instance, multi-tenant, SaaS customer engagement software and integrated payments solutions across five core verticals: Health & Wellness, Government, Utilities, Financial Services, and Giving. Its solutions are purpose-built for each vertical, simplifying and automating processes such as scheduling, client onboarding, client communication, paperless billing, and electronic payment processing. EngageSmart served 68,000 SMB customers and 3,000 enterprise customers as of June 30, 2021, and estimates over 26 million consumers interacted with its platform in 2020.
EngageSmart was founded in 2009 and booked $183 million in sales for the 12 months ended June 30, 2021. It plans to list on the NYSE under the symbol ESMT. J.P. Morgan, Goldman Sachs, BofA Securities, Citi, Deutsche Bank, Raymond James, Truist Securities, and William Blair are the joint bookrunners on the deal. It is expected to price during the week of September 20, 2021.
