Permira completes the acquisition of Squarespace after raising its offer to $7.2 billion.

Squarespace has ceased to be a publicly traded company after private equity firm Permira acquired all remaining common stock of the company. The intention to acquire Squarespace was first announced in May when Permira offered shareholders a sum of $44 per share, representing an equity valuation of $6.6 billion and an enterprise valuation of $6.9 billion. However, the shareholder advisory firm Institutional Shareholder Services (ISS) recommended that shareholders reject this offer, arguing that the transaction did not maximize value, particularly considering that Squarespace's financial prospects were solid.

In response, Permira raised its offer to $46.50 per share last month, representing an approximate valuation of $7.2 billion. Recently, the firm announced that it had acquired the majority of shares and was completing a second-step merger to acquire all outstanding shares from shareholders who did not participate in the buyout offer. This process has already taken place.

Additionally, Squarespace finalized the sale of its restaurant reservation service, Tock, to American Express in a transaction valued at $400 million.

Founded in 2004 by Anthony Casalena, Squarespace is a no-code platform aimed at small and medium-sized businesses and freelancers to create websites, blogs, and online stores. The company went public in 2021, reaching a peak market capitalization of $8 billion, though this was below its peak private valuation of $10 billion. However, the company's market capitalization fell to $2 billion in 2022 before surpassing the $5 billion mark again due to strong earnings.

Permira's proposal represents a 36.4% premium over Squarespace's three-month average price prior to the announcement of the transaction in May. This deal is considered one of the largest "take-private" transactions of 2024. Casalena will continue to serve as CEO and president of Squarespace, and Permira has indicated that he has chosen to retain a "substantial" portion of his equity in Squarespace rather than liquidate all his shares, making him one of the largest shareholders of the company. Following the acquisition, venture capital firms Accel and General Atlantic will also remain "significant investors," according to Casalena.