Website building software provider Squarespace is going private in an all-cash deal that values the company on equity basis at $ 6.6 billion, or a $ 6.9 billion enterprise valuation.
The acquiring company is U.K.-based private equity firm Permira, which acquired a majority stake in Tel Aviv-based cybersecurity firm BioCatch just a couple of weeks ago.
Founded in 2004 by Anthony Casalena, Squarespace is best known for its no-code platform designed to help SMEs and freelancers build websites, blogs, and online stores. It includes customizable templates and a “what you see is what you get” (WYSIWYG) interface that users can configure by dragging and dropping different elements.
Shortly after raising $ 300 million at a hefty $ 10 billion valuation in 2021, Squarespace announced its intentions to go public on the New York Stock Exchange (NYSE), hitting a $ 8 billion peak valuation in mid-2021. In the intervening months, the company’s valuation went into freefall, dropping to a low of $ 2 billion in 2022 — but this year has seen its stock hit its highest peak since late 2021, soaring past the $ 5 billion mark off the back of strong earnings.
As part of its offer, Permira said it will offer Squarespace shareholders $ 44.00 per share, representing a 29% premium on its average 90-day trading price and a 15% premium on its Friday (May 10, 2024) closing price.
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