Website building software provider Squarespace is going private in an all-cash deal that values the company on an equity basis at $6.6 billion, or an enterprise valuation of $6. $9 billion.
The acquiring company is UK-based private equity firm Permira, which acquired a majority stake in Tel Aviv-based cybersecurity firm BioCatch a few weeks ago.
Founded in 2004 by Anthony Casalena, Squarespace is best known for its no-code platform designed to help SMBs 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 valuation of $10 billion in 2021, Squarespace announced plans to go public on the New York Stock Exchange (NYSE), reaching a peak valuation of $8 billion in mid-2021. In the months since, the company’s valuation has been in free fall, falling to a low of $2 billion in 2022 – but this year its stock hit its highest peak since late 2021, surpassing the $5 billion mark thanks to strong profits.
As part of its offering, Permira announced that it would offer Squarespace shareholders $44.00 per share, representing a 29% premium over its 90-day average price and a 15% premium over at its closing price on Friday (May 10, 2024).
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