Squarespace (NYSE:SQSP), a website development platform, has announced a definitive agreement to be taken private by Permira, a global private equity firm. This all-cash transaction is valued at approximately $6.9 billion.

Major shareholders, including CEO Anthony Casalena and long-term investors General Atlantic and Accel, holding about 90% of the company's voting shares, have agreed to support the deal. The transaction’s completion is contingent on regulatory approvals and the consent of a majority of the voting shares from unaffiliated stockholders. The transaction is expected to close by the fourth quarter of 2024.

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According to the agreement, Squarespace stockholders will receive $44.00 per share in cash. This valuation equates to over $6.6 billion based on equity value and about $6.9 billion in enterprise value. This represents a 29% premium over the 90-day volume-weighted average trading price and a 15% premium over the closing share price of $38.19 on May 10, 2024.

The market responded positively to the announcement, with the company’s shares surging 13% on Monday, May 13, 2024. This surge, which saw the stock price consistently hover just below $44, represents a 37% rise year to date, signaling optimism about the future of Squarespace under Permira’s ownership. 

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Squarespace, founded by Anthony Casalena in 2003, started as a personal project to create a website-building tool. Over the years, it became a comprehensive platform offering various products, including websites, domains, e-commerce solutions, and marketing tools.

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