Squarespace says it will go private after $6.9bn Permira deal
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Top website builder Squarespace has confirmed its agreement to go private in an all-cash transaction with Permira, a UK-based private equity firm that has 46 tech companies in its portfolio, including Klarna, McAfee and Zendesk.
Under the terms, Squarespace shareholders will receive $44 per share in cash, marking a 29% premium over the 90-day volume-weighted average of $34.09. The buyout values the New York company at $6.9 billion on an enterprise value basis, or $6.6 billion on an equity value basis.
Anthon Casalena, Squarespace Founder and CEO, will retain “a substantial majority” of his equity, continuing his role as CEO and Board Chairman alongside the company’s current leadership.
Squarespace snapped up for $6.9 billion
The unanimously approved transaction, subject to customary closing conditions and regulatory approvals, is expected to conclude by the fourth quarter of 2024. Casalena and long-term investors General Atlantic and Accel, collectively accounting for around 90% of the Company’s voting shares, were among those voting in favor of the deal.
Casalena commented on the deal: “Squarespace has been at the forefront of providing services to businesses looking to establish themselves online for more than two decades. We are excited to continue building on that foundation, and expanding our offerings, for years to come.”
Permira Partner David Erlong added: “As a firm with a long history of backing leading internet platforms and technologies that enable SMBs to compete globally, we are excited to partner with Anthony and his team to support the company in unlocking its full potential.”
The decision to go private marks a strategic move for Squarespace amidst a thriving private equity landscape. Firms like Thoma Bravo and Vista Equity have recently snapped up firms in a series of multibillion-dollar deals.
Late last year, Squarespace hit the headlines when it took over the Google Domain business after the search engine giant decided to pull out of the market.
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