Squarespace agrees $7bn ‘go-private’ deal

Squarespace shares traded sharply higher in Monday’s trading, albeit the stock now has a short shelf life as private-equity investment firm Permira has struck a $6.9bn to buy the website builder.

Permira’s ‘go-private’ deal is pitched at $44 per share and it has the backing of major shareholders Accel and General Atlantic, as well as executive management.

It will draw a close to a somewhat underwhelming phase in public market ownership, following a 2021 IPO that priced the business at $50 per share – a level that the shares have failed to see since.

In private hands, Permira reckon it can unlock Squarespace’s “full potential”.

“As a firm with a long history of backing leading internet platforms and technologies that enable SMBs to compete globally, we are excited to partner with Anthony and his team to support the company in unlocking its full potential,” Permira partner David Erlong said in a statement.

Anthony Casalena, Squarespace chief executive, meanwhile added: "We are thrilled to be partnering with Permira on this new leg of our journey, alongside our existing long-term investors General Atlantic and Accel, who strongly believe in the future of Squarespace."

In New York, Squarespace stock was up $4.98 or 13% changing hands at $43.18.