Home > Technology > Braintree software startup raises $338 million in latest tech IPO – BetaBoston

Braintree software startup raises $338 million in latest tech IPO – BetaBoston

EngageSmart, a Braintree-based customer engagement software company, priced its initial public offering at $26 a share on Wednesday night.

That was slightly higher than the expected range of $23 to $25 per share, valuing the company at about $4 billion amid a booming market for IPOs.

The deal will bring in $338 million for the company while selling shareholders will collect $40 million. Shares will begin trading on the New York Stock Exchange on Thursday 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.

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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.

Amid the IPO wave, 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 almost $100 million at the IPO price.

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.

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