Vista’s $4 Billion EngageSmart Deal Hit With Court Challenge

An investor is challenging EngageSmart Inc.'s planned $4 billion take-private sale—led by General Atlantic LP, its controlling stockholder—to affiliates of Vista Equity Partners LLC.

The shareholder lawsuit targeting the software company, members of its board, and both investment firms was publicly docketed Monday, a week after the transaction was announced. The proposed class action in Delaware’s Chancery Court seeks an injunction blocking the $23-a-share buyout.

The suit calls the deal underpriced, saying analysts recently speculated the company was worth $25 to $30 a share. It’s likely General Atlantic chose to roll over its equity—and take a 35% in the ...