MONSEY, N.Y., Oct. 25, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of EngageSmart, Inc. (NYSE: ESMT) (“ESMT”) to Vista Equity Partners (“Vista”) for $23.00 per share in cash.
If you remain an ESMT shareholder and have concerns about the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/engagesmart-inc/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On October 23, 2023, ESMT announced that it had agreed to be sold to Vista for $23.00 per share in cash. In connection with the proposed sale, ESMT entered into support agreements with General Atlantic and Summit Partners (owners of 52% and 14% of ESMT’s common stock, respectively), to vote all of their shares in favor of the sale.
Upon closing of the sale, Vista will hold approximately 65%, and General Atlantic will hold approximately 35% of the outstanding common stock. This means that the present majority and controlling shareholder General Atlantic is receiving different treatment in connection with the sale than ESMT’s other common stockholders since—rather than getting paid in cash—General Atlantic is rolling over a portion of its existing 52% interest into a continued interest in ESMT after it becomes a private entity. ESMT is not providing that opportunity to ESMT’s other common stockholders.
The proposed sale was approved by a special committee of purportedly independent and disinterested directors of the Board of Directors (“Special Committee”).
“We are investigating whether the ESMT Board of Directors acted in the best interests of ESMT shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to ESMT shareholders, whether all material information regarding the transaction has been fully disclosed, and whether the members of the Special Committee were truly disinterested and independent.”
Notably, according to TipRanks, the deal price is below the average ESMT price target for Wall Street analysts of $24.50 per share.
Further, shareholders publishing to SeekingAlpha have expressed disappointment with the deal price, with one investor with the screen name of Flavio84 commenting, “Great deal for vista...not so much for shareholders . . . at 23 IMHO is undervalued.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
