Squarespace to go private in $6.9bn deal with Permira

13th May 2024 14:48

(Sharecast News) - Web design and hosting platform Squarespace announced on Monday that it is to go private in a $6.9bn all-cash transaction with global private equity firm Permira.

The company said the transaction, valued at $6.6bn on an equity value basis and $6.9bn on an enterprise value basis, would see shareholders receiving $44.00 per share in cash, making for a 29% premium over Squarespace's 90-day volume weighted average trading price.

Anthony Casalena, the current chief executive officer of Squarespace, would retain a significant portion of his equity and continue to lead the company in his current capacity.

Key shareholders, including long-term investors General Atlantic and Accel, expressed confidence in the transaction, with around 90% of the company's voting shares in agreement.

The transaction remained subject to regulatory approval, and was expected to be completed by the fourth quarter of the year.

"Squarespace has been at the forefront of providing services to businesses looking to establish themselves online for more than two decades," said founder and CEO Anthony Casalena.

"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."

Squarespace said the decision to go private was unanimously approved and recommended by a special committee of its board, consisting entirely of independent and disinterested directors.

On completion of the transaction, Squarespace would transition into a privately-held company, with its common stock no longer publicly listed.

At 1015 EDT (1515 BST), shares in Squarespace were up 13.16% in New York, at $43.22.

Reporting by Josh White for Sharecast.com.