Key Takeaways
- Private equity firm Permira on Monday said it was buying Squarespace for $6.9 billion in cash and taking it private.
- The deal will give Squarespace investors $44 per share, a 15.2% premium to Friday’s closing price.
- Squarespace CEO Anthony Casalena will remain a major stakeholder and stay on as head of the company.
Shares of Squarespace (SQSP) soared Monday after private equity firm Permira announced it was buying the software provider for website building and hosting for $6.9 billion, and taking it private.
Permira said the deal would give Squarespace investors $44 per share, a 15.2% premium to Squarespace’s closing price on Friday. Permira said by taking Squarespace private, it will have “the flexibility and resources to invest in enabling entrepreneurs to build better online brands and more easily transact with their customers.”
David Erlong, a partner at Permira, added that Squarespace “has built a distinct and globally recognized creative brand and an incredible, design-driven platform of tools that empower entrepreneurs and small businesses to establish and scale their online presence.”
Casalena to Remain Squarespace CEO, Chair
Squarespace founder and Chief Executive Officer (CEO) Anthony Casalena noted that the company would continue working with its existing long-term investors, General Atlantic and Accel. Casalena and the two firms own approximately 90% of Squarespace’s voting shares. Under the terms of the agreement, he will continue to be one of the largest shareholders and remain CEO and board chair.
The transaction is expected to be completed in the fourth quarter.
Squarespace shares surged 13% to $43.20 as of 10:03 a.m. ET Monday, their highest level since November 2021.