The latest instalment of the life of Squarespace will see the business returning to private ownership. The platform, which helps entrepreneurs build their own websites, went public on May 19th, 2021, using a direct listing to debut on the New York Stock Exchange.
Now, in 2024, Squarespace has announced an all-cash deal worth $6.9 billion with Permira. This was announced on May 13th, just shy of the three-year anniversary of the firm’s launch onto the Stock Exchange. The news boosted their shares by 13% on the day it was announced. According to a report in the Financial Times, the deal is one of the biggest of its kind in this sector.
Squarespace shares are currently worth around a fifth less than they were when the business first went public in 2021, in the middle of the pandemic. Permira has agreed to pay $44 per share in cash as part of the deal.
Private equity firm steps in to support Squarespace in the next stage of its journey
Permira is a private equity firm, and it’s not the first one to look at the potential held within tech companies. Squarespace is one of the biggest names in its industry, assisting many individuals and small businesses in their push to get online quickly and easily.
A Squarespace spokesperson said the deal would give them flexibility in helping entrepreneurs further.
Why is Squarespace going private?
Flexibility is only part of the deal here. Squarespace stated that it would also have greater resources it could use to help its customers.
Permira was founded in 1985 and is based in London, England. The tech sector is one of several sectors it invests in.
The deal is not yet confirmed, with the transaction expected to conclude by the end of 2024. However, key shareholders have expressed a positive outlook on the deal, with approximately 90% of those holding voting shares agreeing with the sale.
Assuming the deal concludes by the end of the year, Squarespace will no longer be listed on the Stock Exchange.
Where will Squarespace go in future?
As you would expect, the business has been positive and confident over the position it will be in once the deal concludes. Going private once more will give it more freedom to plot its course, and to provide tools and support to its customers.
Flexibility and resources were the two watchwords used. Squarespace customers will certainly be hoping they can see those two elements in action once the business goes private once more. Squarespace is one of the biggest names in the marketplace, so it will be interesting to see whether it can retain its position or strengthen it once the deal concludes.
We’ll be watching closely, as ever, to see what the outcome could be. While major shareholders are confident about the deal, we hope the customers who use Squarespace on a day-to-day basis will also see some positives. We’ll have to wait and see what happens.