Squarespace, a design-driven platform helping entrepreneurs build brands and businesses online, announced that it has entered into a definitive agreement to go private by global private equity firm Permira in an all-cash transaction valued at approximately $6.9 billion.
Under the terms of the deal, Squarespace stockholders will receive $44 per share in cash, representing a transaction valued at over $6.6 billion on an equity value basis and about $6.9 billion on an enterprise value basis. The purchase price represents a premium of about 29% over Squarespace’s 90-day volume weighted average trading price and a premium of 15% over Squarespace’s closing share price of $38.19 on the NYSE on May 10, 2024.
Upon the deal’s completion, Squarespace will become a privately held company with the flexibility and resources to invest in enabling entrepreneurs to build better online brands and more easily transact with their customers.
Anthony Casalena will roll over a substantial majority of his existing equity and continue to be one of the largest shareholders following this deal. He will also continue to serve as Squarespace’s CEO and Board Chairman and lead the business in all aspects of its operations, along with Squarespace’s current leadership team, who are expected to continue their roles following the close of the transaction.
The deal was unanimously approved and recommended by a Special Committee of the Squarespace Board of Directors, composed entirely of independent and disinterested directors, and unanimously approved by the Board of Directors.
The Special Committee retained Centerview Partners LLC as financial advisor and Richards, Layton & Finger as legal counsel.
The Special Committee considered several factors to arrive at its unanimous recommendation in favor of the deal, which will be outlined in Squarespace’s public filings.
When the deal is completed, Squarespace’s common stock will no longer be publicly listed, and Squarespace will become a privately held company.
JP Morgan is Squarespace’s financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is its legal counsel. Centerview Partners is the financial advisor to the Special Committee of the Squarespace Board of Directors, and Richards, Layton & Finger is the legal counsel.
Goldman Sachs is acting as financial advisor to Permira, and Latham & Watkins is acting as legal counsel to Permira Advisers. Blackstone Credit & Insurance (“BXCI”), Blue Owl Capital, and Ares Capital Corp are acting as Joint Lead Arrangers on the debt financing.
Wilson Sonsini Goodrich & Rosati is acting as legal counsel to Anthony Casalena. Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal counsel to General Atlantic. And Cooley is acting as legal counsel to Accel.
KEY QUOTES:
“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. 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.”
– Anthony Casalena, Founder and CEO of Squarespace
“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. As a firm with a long history of backing leading internet platforms and technologies that enable SMBs to compete globally, we are excited to partner with Anthony and his team to support the company in unlocking its full potential.”
– David Erlong, Partner at Permira
“The Squarespace ecosystem provides SMBs with a broad offering – from demand generation to powerful payment solutions, all seamlessly interwoven with intuitive GenAI. We share Anthony and the team’s vision to further invest in these tools to help customers grow.”
– Andrew Young, Partner at Permira
“We are proud to have supported Squarespace for more than a decade as Anthony and the team have built and scaled a very special and durable business. We look forward to being a part of the company’s next phase of growth.”
– Anton Levy, Chairman of Global Technology, Co-President and Managing Director at General Atlantic
