Squarespace's stock soars after $6.9 billion buyout deal with Permira

By Tomi Kilgore

Stock heads for 2 1/2-year high after all-cash deal representing a 15% premium to Friday's closing price

Shares of Squarespace Inc. shot higher in premarket trading Monday after the online brand-building platform for businesses agreed to be acquired by private-equity firm Permira in a cash deal valued at $6.9 billion.

Under the terms of the deal, Squarespace shareholders will receive $44 in cash for each Squarespace share they own, representing a 15.2% premium over Friday's closing price of $38.19.

The stock (SQSP) climbed 12.8% in the premarket, putting it on track to open at the highest price since November 2021.

The deal is expected to close by the fourth quarter of 2024.

Squarespace Chief Executive Anthony Casalena, who founded the New York-based company 21 years ago and holds a majority of the voting power of the company's outstanding shares, will continue to be one of the largest shareholders after the deal closes.

"Squarespace has been at the forefront of providing services to businesses looking to establish themselves online for more than two decades," Casalena said. "We are excited to continue building on that foundation, and expanding our offerings, for years to come."

Because of the pending deal, Squarespace said its investor day, scheduled for May 15, will be canceled.

The stock, which is on track to open at the highest prices seen since November 2021, has rallied 15.7% year to date through Friday, while the S&P 500 has gained 9.5%.

-Tomi Kilgore

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05-13-24 0745ET

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