Permira to take Squarespace private in US$6.9b takeover
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The news: PE firm Permira will take website-developer Squarespace private in a USD6.9 billion ($10.4 billion) takeover.
The numbers: Under the terms of the agreement, Squarespace stockholders will receive USD44 per share in cash, representing a transaction valued at over USD6.6 billion on an equity value basis and approximately USD6.9 billion on an enterprise value basis.
The purchase price represents a premium of approximately 15% over Squarespace's closing share price of USD38.19 on the NYSE on 10 May 2024.
The context: Squarespace went public on the NYSE in 2021 after raising USD300 million at a $10 billion valuation, reaching an USD8 billion market cap high in mid-2021. The company’s stock fell to USD2 billion by 2022, but has gained ground on strong earnings during 2024, climbing back above the USD5 billion mark.
Founder, CEO and board chairman Anthony Casalena will be kept on board after Permira’s takeover, and will remain one of the largest shareholders in Squarespace following the transaction.
The no-code platform is popular with SMEs and freelancers for building websites and online marketplaces with customisable templates.
Shares in SQSP climbed over 13% after the takeover news broke on Monday.
What they said: Casalena said: "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. We are thrilled to be partnering with Permira on this new leg of our journey, alongside our existing long-term investors General Atlantic and Accel, who strongly believe in the future of Squarespace."
The sources: Squarespace press release, TechCrunch
