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Private equity firm Permira will take website design platform Squarespace, Inc. (SQSP) private in an all-cash deal valued at $6.9 billion.
On May 13, 2024, Squarespace, which helps businesses and individuals build, design websites, and create e-commerce stores, rose about 13% in premarket trading on the deal announcement.
Under the terms of the agreement, Squarespace stockholders will receive $44.00 per share in cash from Permira, representing a 15.21% premium from the stock’s Friday last close.
Based on trailing twelve months (TTM), Squarespace’s price-to-sales ratio stands at 4.92, notably higher than the market median of 2.95. This indicates that investors are willing to pay a premium for each dollar of Squarespace’s sales compared to the broader market average.
The deal for Squarespace comes among a string of deals from private equity firms showing interest in tech companies to enhance their business. Last week, digital consultancy firm Perficient (PRFT) was taken private by an EQT AB affiliate.
Squarespace in its market debut in May 2021, had been valued at $6.5 billion.
Squarespace founder and CEO Anthony Casalena will continue in his role after the deal is closed and will roll over a substantial majority of his existing equity, continuing to be one of the largest shareholders after the deal.
The transaction is expected to close by the fourth quarter of 2024, and long-term investors in Squarespace, Accel, and General Atlantic, have agreed to re-invest in the business.
For a more detailed breakdown of the deal, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Squarespace, Inc. (SQSP) by Permira
Editor’s Note: Baranjot Kaur contributed to this article
Disclaimer: Please conduct thorough due diligence before buying or selling any securities mentioned in this article. The content and data provided in this article are not guaranteed to be complete or accurate.