Permira, a global investment firm, has completed its acquisition of website builder Squarespace in a deal worth $7.2 billion. This move takes Squarespace off the New York Stock Exchange, making it a private company again.
Squarespace was originally founded in 2004 by Anthony Casalena, and it has become a popular platform for small businesses and freelancers to create websites, blogs, and online stores. Casalena will remain the CEO and continue leading the company.
Initially, Permira offered $44 per share, valuing Squarespace at $6.6 billion. However, after shareholders were advised to reject the offer, Permira increased the price to $46.50 per share, raising the final valuation to $7.2 billion.
Interestingly, this acquisition happened after a period of ups and downs for Squarespace. It had a market value of $8 billion when it went public in 2021, but that dropped to $2 billion in 2022. Still, strong earnings helped the value bounce back to over $5 billion before the deal with Permira was completed.
David Erlong, Partner at Permira, said: “Now more than ever, Squarespace’s ecosystem plays a crucial role in empowering customers globally to bring their innovations to life. We look forward to supporting Anthony and his team in growing Squarespace and expanding its product suite through its next chapter of success.”
Permira’s deal is one of the largest take-private transactions of 2024. Squarespace continues to have backing from its previous investors, Accel and General Atlantic, who believe in its future growth. This acquisition could lead to further innovation in the online tools Squarespace offers for building websites, especially with the growing demand for services that support small businesses.
