One of the world’s largest website builders is about to go private to compete better against Wix and GoDaddy
Squarespace offered $7.2 billion to go private
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Squarespacecould be about to go private as a looming Permira deal could see the acquisition of thewebsite builder platformbecome better aligned to take on industry giantsGoDaddyandWix.
The British investment firm has agreed to increase its offer in a nod to its confidence in the company – the deal could be worth $7.2 billion.
Permira’s revised deal sees it offering $46.50 per share in cash to Squarespace stockholders, up from the $44 offered in May 2024, equating to a deal that would have been worth $6.9 billion.
Squarespace offered $0.3 billion in added valuation
Permira’s revised offer comes in response to advice taken by Squarespace investors not to accept the proposed deal. Proxy advisory firm Institutional Shareholder Services suggested the sale process would not offer the best value to shareholders in light of the company’s strong performance.
In its most recent quarter, Squarespace grew revenue by a staggering 20% to $296.8 million. Prior to that, quarterly growth stood at an equally strong 19%.
Michael Fleisher, Chairman of the Special Committee of the Squarespace Board of Directors,commentedon the deal: “Our core focus has been maximizing value and certainty for the unaffiliated stockholders. This transaction is the result of a deliberate and thoughtful process and ultimately represents a great outcome that is in the best interest of Squarespace and all of its stockholders.”
Permira Partner David Erlong added: “This best and final offer allows Squarespace stockholders to capture immediate and certain value for their investment.”
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By going private as part of the deal, Squarespace hopes to access more resources and flexibility to enhance its portfolio, which could help continue its positive growth trajectory.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
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