fb-pixel Skip to main content

EngageSmart, a Braintree-based customer engagement software company, priced its initial public offering at $26 a share, slightly higher than the expected range of $23 to $25 per share, valuing the company at about $4 billion. After the first day of trading Thursday, the shares closed at $34.12, up 31 percent from the IPO price.

Amid a booming market for public offerings, the deal will bring in $338 million for the company while selling shareholders will collect $40 million. Shares are trading on the New York Stock Exchange under the symbol ESMT.

EngageSmart makes software to help customers ranging from hospitals to utilities collect payments. It also offers software to manage health care and wellness practices and runs the popular nonprofit fund-raising tool DonorDrive.


Revenue for the first half of 2021 totaled $99 million, up 59 percent from the same period a year earlier. EngageSmart had a net profit of $300,000 for the first half versus a net loss of $6.4 million a year ago.

The public offering comes during one of the busiest weeks for stock market debuts in decades, including the IPOs of Boston firms Toast and Definitive Healthcare and the SPAC merger listing of Ginkgo Bioworks. The wave of new public companies is remaking the local tech scene and providing wealth that could eventually back many more startups.

In the current wave of exits, more than a dozen Boston entrepreneurs have exceeded $100 million in stock holdings in their companies. EngageSmart founder and CEO Bob Bennett will end up with 3.5 million to 3.7 million shares after the IPO, worth more than $100 million.

Bennett has founded several companies, including MicroFridge, which sold a combination refrigerator, freezer, and microwave oven in the 1980s.


J.P. Morgan, Goldman Sachs & Co., BofA Securities, and Citigroup led the deal.

Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him on Twitter @ampressman.