Squarespace Tender Offer: What You Need to Know About the Acquisition

*Tender offer to expire at one minute before midnight on Friday, October 11th

Squarespace, Inc., the popular website-building platform, is undergoing a major acquisition in 2024, led by private equity group Permira. The acquisition, conducted through Spaceship Group MergerCo, Inc., a vehicle created specifically for this transaction, offers shareholders $46.50 per share. This significant move will see Squarespace transition into private ownership, reshaping its future strategy and investor relations.

In this blog, we'll delve into the specifics of the acquisition, the role of Permira, and how this deal impacts Squarespace, its shareholders, and the competitive landscape of website-building platforms.

What is the Squarespace Acquisition All About?

The acquisition is spearheaded by Permira, a global private equity firm. Using Spaceship Group MergerCo, Inc. as the transaction vehicle, Permira is offering $46.50 per share to Squarespace shareholders. This buyout represents a significant shift for the company, which has been publicly traded until now.

Key Components of the Acquisition

1. Offer Price: Permira, via Spaceship Group MergerCo, is offering $46.50 per share, paid in cash​​. This price represents a premium to the market value of Squarespace, providing shareholders with an attractive payout.

2. The Acquiring Entity: While Permira is the entity funding and driving the acquisition, Spaceship Group MergerCo, Inc. is the vehicle through which the transaction will be completed. This entity was created specifically to acquire all outstanding shares of Squarespace​​.

3. Key Players Involved: Anthony Casalena, founder and CEO of Squarespace, along with major shareholders like Accel and General Atlantic, are central figures in this buyout. These stakeholders play a crucial role in the merger process and the future of the company post-acquisition​​.

4. Merger Structure: Once the tender offer is complete, a series of transactions will finalize the deal. Squarespace will become a wholly-owned subsidiary of Permira via Spaceship Group MergerCo​.

5. Tender Offer Details: The tender offer, outlined in the Amended and Restated Agreement and Plan of Merger, allows Permira to acquire all outstanding shares. The transaction includes internal share sales and contributions from key stakeholders like Casalena, Accel, and General Atlantic​.

Why is Permira Acquiring Squarespace?

Permira’s acquisition of Squarespace fits within its strategy of investing in tech-driven companies with growth potential. Taking Squarespace private allows the company to make strategic decisions without the pressure of quarterly performance reports and public market scrutiny. Permira likely sees this as an opportunity to help Squarespace grow, expand its product offerings, and solidify its position in the competitive website-building and e-commerce space.

Implications for Shareholders

For current shareholders, the offer price of $46.50 per share provides a substantial opportunity to exit their investments at a favorable price. The board of Squarespace has recommended that shareholders accept the tender offer, citing that the offer reflects fair market value​.

What Happens if You Don’t Tender Your Shares?

Shareholders who choose not to tender their shares could still be affected. Once a majority of shares are tendered and the transaction is completed, non-tendering shareholders may be forced to sell their shares at the same price, or the company may take alternative steps to acquire remaining shares​.

The Future of Squarespace Under Permira’s Ownership

Post-acquisition, Squarespace will no longer be a publicly traded company, which means it will operate without the constraints of public financial reporting. This freedom allows Permira and Squarespace to make longer-term investments in the company’s technology, e-commerce tools, and overall platform without having to cater to public market pressures.

Strategic Goals for Squarespace

Under Permira’s ownership, Squarespace is likely to pursue growth through expanded offerings in e-commerce and business tools. Being private allows the company to make bold strategic moves, invest in innovation, and compete more effectively with other platforms like Shopify and Wix.

Competing in a Crowded Market

While Squarespace has built a strong reputation among creatives and small business owners, it faces stiff competition from well-established players. Permira’s backing could provide the capital and strategic vision needed to bolster Squarespace’s competitiveness, especially in key areas like e-commerce solutions, international expansion, and customization features.

What This Means for Investors

Once the acquisition is finalized, current shareholders will receive $46.50 per share and the company will go private. For most shareholders, this marks the end of their investment in Squarespace. Only those with ownership stakes through entities like Permira or internal stakeholders will maintain a relationship with the company post-acquisition​.

What Does This Acquisition Mean for Squarespace’s Future?

The 2024 acquisition of Squarespace by Permira, through Spaceship Group MergerCo, represents a pivotal moment for the company and its shareholders. The $46.50 per share offer is an attractive opportunity for shareholders to exit their positions, while Permira’s private equity backing opens new doors for Squarespace to grow without public market constraints.

With the flexibility of being a private company, Squarespace is well-positioned to enhance its product offerings, focus on long-term growth, and compete more aggressively in the crowded website-building and e-commerce market. For now, shareholders must weigh their options carefully, either cashing in on the offer or holding on with the hope of future gains under private ownership.

FAQs

What is the Squarespace acquisition offer price?

Permira is offering $46.50 per share in cash through its acquisition vehicle, Spaceship Group MergerCo​​.

Who is acquiring Squarespace?

Permira, a private equity firm, is acquiring Squarespace through its transaction vehicle, Spaceship Group MergerCo, Inc.​.

How will the acquisition impact current Squarespace shareholders?

Shareholders will receive $46.50 per share in cash if they tender their shares. After the acquisition, the company will go private​​.

What happens if I don't tender my shares?

Non-tendering shareholders could still receive the offer price through other payout mechanisms if the acquisition proceeds as planned​.

Why is Squarespace going private?

Being private allows Squarespace to focus on long-term growth and innovation without the pressures of public markets​​.

Squarespace Tender Offer

Squarespace Tender Offer