Squarespace Seals $6.9B Privatization Deal With Permira, Major Investors Back Transformative Deal

Zinger Key Points
  • Squarespace to transition to a private company under a $6.9 billion deal with Permira.
  • CEO Anthony Casalena to remain a major shareholder and continue leading Squarespace post-deal.
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Squarespace, Inc. SQSP announced today that it has agreed to go private in a deal with global private equity firm Permira, in a transaction valued at over $6.6 billion on an equity value basis and approximately $6.9 billion on an enterprise value basis. 

Stockholders of Squarespace will receive $44.00 per share in an all-cash transaction. This purchase price is a 29% premium over the 90-day volume-weighted average and 15% higher than the closing price on May 10, 2024. 

Following the transaction, Squarespace will operate as a privately held company, gaining additional flexibility and resources to enhance its services for entrepreneurs.

Squarespace CEO Anthony Casalena, along with significant investors General Atlantic and Accel, who hold about 90% of the company’s voting shares, have agreed to vote in favor of the deal. 

Anthony Casalena will retain a significant portion of his equity and remain one of Squarespace’s most significant shareholders after the transaction. He will also continue as CEO and Chairman of the Board, leading the company alongside the current leadership team, who are expected to stay on post-transaction.

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

Price Action: SQSP shares are trading higher by 13% at $43.17 premarket at the last check Monday.

Image sourced from Shutterstock

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