Squarespace’s Strategic Shift: Going Private in a $6.9 Billion Deal with Permira Amidst Google Domains Acquisition

Permira, a private-equity firm, has struck a deal to purchase Squarespace, a leading website-building platform and domain host/registrar, for $6.9 billion in an all-cash transaction, as announced by both entities recently. This acquisition values Squarespace at a 30 percent premium over its unaffected share price, translating to $44 per share in cash. As a result of this deal, Squarespace, which debuted on the stock market at $48 per share in 2021 and has not exceeded that price since, will transition from a public to a private company.

Anthony Casalena, the founder and CEO of Squarespace, expressed his enthusiasm about partnering with Permira for the next phase of the company’s growth. Similarly, David Erlong, a partner at Permira, conveyed his excitement about collaborating with Casalena and his team to maximize the company’s potential. The transaction received unanimous approval from the three investors who control 90 percent of Squarespace’s voting shares – Casalena himself, Accel, and General Atlantic – all of whom will retain their investments post-deal.

Squarespace’s valuation saw a significant boost in July when Google announced it would be discontinuing its Google Domains service after nearly a decade. Google decided to sell the business and all its assets, including around 10 million domains managed for millions of customers, to Squarespace. This move has notably strengthened Squarespace’s position in the market.

The trend of smaller tech companies going private is becoming more common, especially for those facing challenges in the public markets or seeking to enhance their value through mergers with larger entities. For instance, Qualtrics, an experience management firm that went public in 2021, reverted to private ownership in 2023 following a $12.5 billion acquisition by Silver Lake.