Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
Squarespace, the popular website builder, is set to transition into private ownership through a deal with Permira, a U.K.-based private equity firm. The agreement, conducted entirely in cash, values Squarespace at $6.9 billion. Founded in 2004 by CEO Anthony Casalena, Squarespace is renowned for its user-friendly platform, empowering small and medium-sized enterprises (SMEs) and freelancers to create websites, blogs, and online stores without needing coding skills. Its interface, featuring customizable templates and a drag-and-drop functionality, simplifies the website-building process.
After securing a substantial $300 million investment at a valuation of $10 billion in 2021, Squarespace pursued a public listing on the New York Stock Exchange (NYSE). Its market capitalization peaked at $8 billion in mid-2021. However, the company experienced a downturn, with its stock value plummeting to $2 billion in 2022. This year, Squarespace has seen a resurgence in stock performance, reaching its highest point since late 2021, with its market cap surpassing $5 billion due to robust earnings.
Permira's proposal offers Squarespace shareholders $44 per share, a 15% increase over the closing price on Friday, May 10, 2024. This transaction values the company's equity at $6.6 billion.
