Squarespace snapped up in billion-dollar deal
Permira has confirmed the completion of its acquisition of website building platform Squarespace in an all-cash deal valued at $7.2 billion.
As part of the deal, Squarespace will be taken private, meaning it will no longer be listed on the New York Stock Exchange (NYSE).
The buyout, initially announced in early summer, ended up costing Permira $300 million more than the $6.9 billion it had initially set out to pay.
Squarespace is now a private company
Although members of the public can no longer buy shares in the company, Squarespace founder and CEO Anthony Casalena has retained a substantial majority of his equity, remaining one of the largest shareholders.
Casalena will continue to lead the company as CEO and Board Chairman, with the company’s other leadership members also remaining in place, confirmed Permira.
The CEO added: “We are excited to embark on a new chapter with Permira, one focused on our long-term strategy and commitment to serving entrepreneurs globally.”
Permira Partner David Erlong said the investment company’s decision to back Squarespace recognizes the company’s strong relationships with small businesses and entrepreneurs, making a vote of confidence in the website-building platform.
He added: “We look forward to leveraging our decades-long experience and track record backing internet platforms and technologies that enable SMBs, as we support Anthony and his team in growing Squarespace and expanding its product suite through its next chapter of success.”
The deal, valued at $7.2 billion, equates to $44.50 per share, up from the $44 per share that was initially suggested and subsequently rejected by shareholders under the advice of Institutional Shareholder Services on the basis that the valuation undervalued the company.
Marking one of the biggest transactions this year taking a company from public to private, Permira will continue to work with long-standing investors Accel and General Atlantic, which Casalena describes as “meaningful investors.”