Squarespace Inc., a software company that helps entrepreneurs build brands and businesses online, is set to go private in a deal with private equity firm Permira. The approximately $6.9 billion all-cash deal will see Squarespace shareholders receiving $44 per share for each share they own. This move comes two years after Squarespace went public in a direct listing at $50 per share. The decision to take the company private was unanimously approved by a special committee of the Squarespace board of directors and the board itself. The current CEO and chairman, Anthony Casalena, will retain his position in the company even after the deal is finalized.
Major shareholders of Squarespace, including long-term investors General Atlantic and Accel, which collectively hold about 90% of the company’s voting shares, have agreed to vote in favor of the transaction. This level of support from key investors is crucial in ensuring the success of the deal. The agreement is expected to close by the fourth quarter, pending any regulatory approvals or other necessary steps in the process. Following the announcement of the deal, shares of Squarespace saw a 13% increase before the market opened on Monday, indicating positive investor sentiment towards the acquisition.
Permira’s decision to take Squarespace private reflects the private equity firm’s confidence in the software company’s potential for growth and success in the future. By bringing Squarespace under its ownership, Permira aims to further enhance the company’s capabilities and offerings in the digital branding and online business space. As more entrepreneurs and businesses turn to online platforms for their branding and marketing needs, Squarespace is well-positioned to capitalize on this trend and expand its market reach. The partnership between Squarespace and Permira could lead to innovative new strategies and products that benefit both the company and its clients.
The move to take Squarespace private not only provides the company with access to additional resources and expertise through Permira but also allows for greater flexibility and focus on long-term growth objectives. As a private entity, Squarespace can operate with a more strategic and proactive approach to business development, without the pressures of quarterly earnings reports and public market expectations. This shift in ownership structure could enable the company to make bold decisions and investments that drive innovation and competitiveness in the digital branding industry. With support from Permira, Squarespace can explore new avenues for expansion and product evolution, enhancing its value proposition for customers.
The retention of Anthony Casalena as Squarespace CEO and chairman under the new ownership structure signals continuity and stability for the company’s leadership team. Casalena’s leadership has been instrumental in guiding Squarespace through its growth and evolution as a market leader in digital branding solutions. His ongoing involvement in shaping the company’s strategic direction post-acquisition will be critical in ensuring a smooth transition and sustained momentum in Squarespace’s operations. With the backing of Permira and the continued commitment of key shareholders, Squarespace is well-positioned to navigate the changing landscape of online business and drive sustainable growth in the years ahead.
Overall, the decision to go private with Permira represents a significant milestone for Squarespace and a strategic move to unlock new opportunities for value creation and innovation. The acquisition signals a vote of confidence in Squarespace’s business model and growth potential, paving the way for enhanced offerings and expanded market presence. As the digital landscape continues to evolve, Squarespace’s partnership with Permira positions the company for continued success and leadership in the competitive online branding industry. The coming together of these two entities is a testament to the enduring value of Squarespace’s platform and the vision of its leadership, setting the stage for a new chapter of growth and expansion in the digital business world.
