Squarespace could be on the verge of going private as an impending deal with Permira could make the acquisition of the website building platform better aligned to compete with industry giants GoDaddy and Wix.
The British investment firm agreed to increase its offer as a sign of its confidence in the company: the deal could reach $7.2 billion.
Permira's revised deal calls for Squarespace shareholders to be offered $46.50 per share in cash, up from $44 offered in May 2024, equivalent to a deal that would have been worth $6.9 billion.
Squarespace offered $0.3 billion in additional valuation
Permira's revised offer follows a recommendation by Squarespace investors not to accept the proposed deal. Proxy advisory firm Institutional Shareholder Services suggested the sale process would not provide the best value for shareholders given the company's strong performance.
In its most recent quarter, Squarespace grew revenue by a staggering 20% to $296.8 million. Prior to that, quarterly growth stood at an equally solid 19%.
Michael Fleisher, Chairman of the Special Committee of the Board of Directors of Squarespace, commented on the deal: “Our primary goal has been to maximize value and security for unaffiliated shareholders. This transaction is the result of a deliberate and thoughtful process and ultimately represents a great outcome that benefits Squarespace and all of its shareholders.”
Permira Partner David Erlong added: “This final and best-of-breed offer allows Squarespace shareholders to realize immediate and secure value for their investment.”
By going private as part of the deal, Squarespace hopes to gain more resources and flexibility to enhance its portfolio, which could help it continue its positive growth trajectory.
