Squarespace Buyout Offer Increased by Permira

Private equity firm Permira has raised its offer to acquire website design software company Squarespace, increasing the total to $7.2 billion. This revised offer comes just four months after Squarespace initially announced plans to go private in a $6.9 billion deal with Permira.

• The new offer proposes $46.50 per share in cash for Squarespace stockholders, up from the previous offer of $44 per share.
• The increased bid follows a recommendation from proxy advisory firm Institutional Shareholder Services (ISS) urging Squarespace investors to reject the initial proposal.
• Permira’s latest offer represents a 36.4% premium over the stock’s closing price on May 10, the last trading day before the initial deal announcement.

Permira’s Rationale for Increased Offer

The increased offer reflects Permira’s continued interest in Squarespace, recognizing the company’s value in assisting businesses with digitizing operations and enhancing branding. Permira sees the potential for Squarespace to capitalize on the growing trend of businesses transitioning online.

• Permira’s investment in Squarespace demonstrates its confidence in the company’s future growth potential.
• The increased offer highlights the strategic value of Squarespace in the digital landscape.

Squarespace’s Perspective on Going Private

Squarespace’s decision to go private was initially driven by a desire for greater flexibility and resources to support entrepreneurs. The company believes that being private will enable it to focus on long-term growth strategies.

• Going private will provide Squarespace with more autonomy to make strategic decisions without the pressures of public markets.
• The deal will give Squarespace access to Permira’s resources and expertise to further expand its operations and product offerings.

The Impact of the Increased Offer

The increased offer from Permira is likely to encourage Squarespace investors to reconsider their initial stance. The revised bid reflects the strategic importance of Squarespace in the digital landscape and the potential for further growth.

• The transaction is expected to be completed through a tender offer, as per the agreement between Squarespace and Permira.
• The deal will see Squarespace delisting from the public markets and becoming a privately held company.

Timeline of Events Leading to the Buyout Offer

• May 2024: Squarespace announced plans to go private in a $6.9 billion all-cash deal with Permira.
• September 2024: Permira increased its offer to acquire Squarespace to $7.2 billion.

Squarespace’s Recent Acquisitions and Strategic Initiatives

Squarespace has been actively engaged in strategic initiatives to strengthen its position in the website design and online presence market. In June 2023, the company acquired Google’s domain business in a $180 million deal, with financing from JPMorgan Chase. This acquisition expanded Squarespace’s product offerings and customer base.

Key Takeaways

The increased offer from Permira to take Squarespace private reflects the strategic value of the company in the digital landscape. The transaction will provide Squarespace with greater flexibility and resources to continue its growth trajectory. The move is expected to benefit both Squarespace and its investors, as it provides a pathway for the company to achieve its long-term goals without the constraints of public markets.