Your Favorite YouTubers' Sponsor Is Going Private In $6.9 Billion Takeover

Squarespace SQSP, a website development platform, has announced a definitive agreement to be taken private by Permira, a global private equity firm. This all-cash transaction is valued at approximately $6.9 billion.

Major shareholders, including CEO Anthony Casalena and long-term investors General Atlantic and Accel, holding about 90% of the company's voting shares, have agreed to support the deal. The transaction’s completion is contingent on regulatory approvals and the consent of a majority of the voting shares from unaffiliated stockholders. The transaction is expected to close by the fourth quarter of 2024.

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According to the agreement, Squarespace stockholders will receive $44.00 per share in cash. This valuation equates to over $6.6 billion based on equity value and about $6.9 billion in enterprise value. This represents a 29% premium over the 90-day volume-weighted average trading price and a 15% premium over the closing share price of $38.19 on May 10, 2024.

The market responded positively to the announcement, with the company’s shares surging 13% on Monday, May 13, 2024. This surge, which saw the stock price consistently hover just below $44, represents a 37% rise year to date, signaling optimism about the future of Squarespace under Permira’s ownership. 

Founder and CEO Anthony Casalena, a key figure in Squarespace’s success, will retain a significant portion of his equity and remain a major shareholder after the acquisition. He will continue as CEO and Board Chairman, providing stability and continuity to the company’s operations. The existing leadership team, expected to stay on post-transaction, will further bolster this stability.

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"Squarespace has been at the forefront of providing services to businesses looking to establish themselves online for more than two decades. We are excited to continue building on that foundation and expanding our offerings, for years to come," said Casalena. "We are thrilled to be partnering with Permira on this new leg of our journey, alongside our existing long-term investors General Atlantic and Accel, who strongly believe in the future of Squarespace."

Squarespace, founded by Anthony Casalena in 2003, started as a personal project to create a website-building tool. Over the years, it became a comprehensive platform offering various products, including websites, domains, e-commerce solutions, and marketing tools.

It’s also well-known for its extensive sponsorship of YouTubers and online content creators. By partnering with various influencers, the company effectively promotes its website-building and online business tools to diverse audiences. These sponsorships have helped Squarespace reach millions of potential users, highlighting the platform’s ease of use, versatility, and robust features tailored for entrepreneurs looking to establish and grow their online presence.

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