Squarespace taken private in $6.9bn deal

August 2024 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

August 2024 Issue

In a transaction that takes the website builder private, Squarespace is to be acquired by UK-based global private equity firm Permira in an all-cash deal valued at approximately $6.9bn.

Under the terms of the definitive agreement, Squarespace stockholders will receive $44 per share in cash, representing a premium of approximately 29 percent over Squarespace’s 90-day volume weighted average trading price, and a premium of 15 percent over its closing share price of $38.19 on the New York Stock Exchange on 10 May 2024.

Upon completion of the transaction, Squarespace’s common stock will no longer be publicly listed, and the company will become a privately-held entity with the flexibility and resources to invest in enabling entrepreneurs to build better online brands and more easily transact with their customers.

The transaction was unanimously approved and recommended by a special committee of the Squarespace board of directors, composed entirely of independent and disinterested directors, and unanimously approved by the board of directors.

“Squarespace has been at the forefront of providing services to businesses looking to establish themselves online for more than two decades,” said Anthony Casalena, founder and chief executive of Squarespace. “We are excited to continue building on that foundation and expanding our offerings for years to come.”

As part of the transaction, Mr Casalena will roll over a substantial majority of his existing equity and continue to be one of the largest shareholders. He will also continue to serve as chief executive and board chairman – leading the business in all aspects of its operations along with the company’s current leadership team, who are expected to continue in their roles.

“Squarespace has built a distinct and globally recognised creative brand and an incredible, design-driven platform of tools that empower entrepreneurs and small businesses to establish and scale their online presence,” said David Erlong, a partner at Permira. “As a firm with a long history of backing leading internet platforms and technologies that enable small and midsize businesses (SMBs) to compete globally, we are excited to partner with Squarespace to support the company in unlocking its full potential.”

A design-driven platform helping entrepreneurs build brands and businesses online, Squarespace empowers millions in more than 200 countries and territories with all the tools they need to build an online presence, and monetise and scale their business. Its suite of products range from websites, domains, ecommerce and marketing tools.

“The Squarespace ecosystem provides SMBs with a broad offering – from demand generation to powerful payment solutions, all seamlessly interwoven with intuitive generative artificial intelligence,” added Andrew Young, a partner at Permira. “We share Mr Casalena and his team’s vision to further invest in these tools to help customers grow.”

Expected to close by the fourth quarter of 2024, the transaction is subject to receipt of regulatory approvals and other customary closing conditions.

Acting as financial adviser to Squarespace is JP Morgan, with Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel. Goldman Sachs & Co LLC is acting as financial adviser and Latham & Watkins LLP is acting as legal counsel to Permira.

Mr Casalena concluded: “We are thrilled to be partnering with Permira on this new leg of our journey, alongside our existing long-term investors, who strongly believe in the future of Squarespace.”

Fraser Tennant