Squarespace, Inc. (NYSE: SQSP), the platform renowned for its design-centric approach to assisting entrepreneurs in establishing online brands and businesses, has today disclosed its definitive agreement to transition into a privately-held entity under Permira, the global private equity firm, in an all-cash deal valued at around $6.9 billion.
As per the terms of the agreement, Squarespace shareholders will receive $44.00 per share in cash, translating to a transaction valued at over $6.6 billion in terms of equity value and approximately $6.9 billion in terms of enterprise value. This purchase price signifies a premium of about 29% over Squarespace’s 90-day volume-weighted average trading price and a premium of 15% over Squarespace’s closing share price of $38.19 on the NYSE on May 10, 2024. Upon the completion of the transaction, Squarespace will transform into a privately-held enterprise, equipped with the flexibility and resources to invest in enhancing entrepreneurs’ abilities to create stronger online brands and facilitate smoother transactions with their clientele.
Anthony Casalena will retain a significant portion of his existing equity, positioning him as one of the principal shareholders post-transaction. He will remain in his roles as Squarespace’s Chief Executive Officer and Board Chairman, overseeing all facets of the company’s operations, alongside Squarespace’s current leadership team, who are expected to continue in their roles post-transaction.
Anthony Casalena, Founder and CEO of Squarespace, expressed, “Squarespace has been leading the charge in providing services to businesses seeking to establish their online presence for over two decades. We are excited to continue building on that legacy and expanding our offerings for years to come. We are delighted to collaborate with Permira on this new chapter of our journey, alongside our existing long-term investors General Atlantic and Accel, who have strong confidence in Squarespace’s future.”
David Erlong, Partner at Permira, commented, “Squarespace has cultivated a distinct and globally recognized creative brand, alongside an exceptional, design-driven suite of tools that empower entrepreneurs and small businesses to initiate and expand their online footprint. As a firm with a rich history of supporting leading internet platforms and technologies that empower SMBs to compete globally, we are eager to partner with Anthony and his team to aid the company in reaching its full potential.”
Andrew Young, Partner at Permira, added, “The Squarespace ecosystem offers SMBs a comprehensive suite of services – from demand generation to robust payment solutions, all seamlessly integrated with intuitive GenAI. We share Anthony and the team’s vision to further invest in these tools to facilitate customer growth.”
Anton Levy, Chairman of Global Technology, Co-President, and Managing Director at General Atlantic, remarked, “We are honored to have backed Squarespace for over a decade as Anthony and the team have built and expanded a truly unique and resilient business. We eagerly anticipate being part of the company’s next phase of growth.”
Due to the pending transaction, the Company will no longer host its previously announced Investor Day scheduled for May 15, 2024.
Source: Squarespace