Squarespace to Transition to Private Ownership Under $6.9 Billion Deal with Permira
Squarespace, the acclaimed website builder known for its robust no-code platforms, is set to transition to private ownership. The deal, valued at approximately $6.9 billion in enterprise valuation, sees UK-based private equity firm Permira acquiring the New York-based tech company. This all-cash transaction promises to reshape Squarespace’s future, enhancing its ability to innovate and expand its services globally.
Squarespace’s Journey and Evolution
Founded in 2004 by Anthony Casalena, Squarespace started as a simple blog-hosting service and has since evolved into a key player in the website building and e-commerce sectors, catering primarily to SMEs and freelancers. The platform is celebrated for its intuitive “what you see is what you get” (WYSIWYG) interface, which allows users to craft websites through a simple drag-and-drop process without needing to code.
From Public to Private
This acquisition comes on the heels of a tumultuous period for Squarespace, which saw its valuation peak at $10 billion in 2021 following a $300 million fundraising round, only to plummet to $2 billion in 2022. However, a rebound in stock prices was driven by strong earnings, pushing the valuation back over $5 billion this year, setting the stage for this major deal.
The Offer and Future Plans
Permira, which has a history of investing in leading internet platforms and technologies, offered $44.00 per share to Squarespace shareholders. This represents a 29% premium over the 90-day volume-weighted average and a 15% premium over the closing share price as of May 10, 2024. This aggressive offer reflects confidence in Squarespace’s long-term growth trajectory and its continued innovation in the web services industry.
Leadership and Vision
“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,”
Anthony Casalena, Founder and CEO of Squarespace
Under the terms of the deal, Casalena will continue to serve as CEO and Chairman of the Board, ensuring leadership continuity.
Partner Perspectives
David Erlong, Partner at Permira, commented on the acquisition, “Squarespace has built a distinct and globally recognized creative brand and an incredible, design-driven platform of tools that empower entrepreneurs and small businesses to establish and scale their online presence. 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.”
