Squarespace Stock Is Surging On Deal With Google: What's Going On?

Squarespace Inc SQSP shares are rising in extended trading Thursday after the company entered into a definitive agreement to acquire Alphabet Inc's GOOG Google Domains business. 

What To Know: Squarespace entered into a definitive asset purchase agreement with Google to acquire the assets associated with the Google Domains business, which includes approximately 10 million hosted domains.

Squarespace did not disclose the financial terms of the acquisition.

"We are exceptionally proud to be chosen to serve the customers of the Google Domains business. Domains are a critical part of web infrastructure and an essential piece of every business's online presence," said Anthony Casalena, founder and CEO of Squarespace.

Squarespace will honor all existing Google Domains customers' renewal prices for at least one year and provide incentives to encourage the customers to build websites with the Squarespace platform. 

The transaction is expected to close in the third quarter. Squarespace believes the deal will be meaningfully accretive to its business from both a revenue and free cash flow perspective. Management will discuss the details on a conference call at 5 p.m. ET. 

See Also: Adobe Stock Jumps On Earnings Beat, Strong Outlook: Company Says It's Positioned To Lead 'New Era Of Generative AI'

SQSP Price Action: Squarespace shares were up 6.08% after hours at $33.32 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Squarespace.