Squarespace Goes Private in $6.9B Deal

Squarespace, Inc. has announced its decision to go private in an all-cash transaction valued at approximately $6.9 billion with Permira, a global private equity firm. As part of this agreement, Squarespace stockholders will receive $44.00 per share in cash, representing a premium of approximately 29% over the company's 90-day volume weighted average trading price.

Anthony Casalena, the founder and CEO of Squarespace, will roll over a substantial majority of his existing equity and continue to lead the company as the Chief Executive Officer. The transaction also includes the re-investment of long-term investors General Atlantic and Accel.

The transaction is expected to close by the fourth quarter of 2024 and is subject to regulatory approvals. Upon completion of the transaction, Squarespace's common stock will no longer be publicly listed, and the company will become privately held.

Squarespace's financial advisor, JP Morgan, and legal counsel, Skadden, Arps, Slate, Meagher & Flom LLP, are assisting in the transaction. Additionally, Centerview Partners LLC is acting as financial advisor and Richards, Layton & Finger as legal counsel to the special committee of Squarespace's Board of Directors.

The company has decided not to hold its previously announced investor day, which was scheduled for May 15, 2024, due to the pending transaction.

This move marks a significant development for Squarespace and is seen as a strategic step to provide the company with the flexibility and resources needed to invest in enabling entrepreneurs to build better online brands and transact with their customers. The market has reacted to these announcements by moving the company's shares 13.2% to a price of $43.24. For more information, read the company's full 8-K submission here.

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