Website building platform Squarespace is set to ditch the public market after announcing a $6.9 billion all-cash deal with private equity firm Permira. The agreement, finalized on May 13, 2024, will see Squarespace become a privately held company.
This move comes after what Squarespace describes as “nearly three turbulent years on the public market.” The company went public in 2021 via a direct listing, but its stock price never quite reached the heights investors anticipated. In fact, it opened below its initial reference price and never surpassed its opening price of $48.
The Permira acquisition offers a significant premium to Squarespace’s pre-deal trading price. Shareholders will receive $44.00 per share, representing a roughly 30% increase over the 90-day average trading price and a 15% bump over the closing price on May 10th, 2024.
Squarespace believes this shift will grant them greater flexibility and resources. In a press release, CEO Anthony Casalena stated the move will allow them to “invest in enabling entrepreneurs to build better online brands and more easily transact with their customers.” Casalena himself plans to retain a significant ownership stake in the company.
The deal is expected to close by the fourth quarter of 2024, pending regulatory approvals. This shift marks a significant change for Squarespace, and only time will tell how it impacts the company’s future trajectory.
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