Squarespace stock rallies on deal to acquire 10 million domain customers from Google

Squarespace Inc. (SQSP) stock rallied in the extended session Thursday after the company said it was buying millions of accounts from Google's Domain business for an undisclosed price. Squarespace shares rallied as much as 6%, following a 2.4% rise to close the regular session at $31.39. Under the deal, Squarespace will acquire about 10 million domains from Google, and said it will honor renewal prices for all existing Google Domains customers "for at least 12 months following the closing of the transaction," and provide other incentives for customers. The company said it expects the deal to close in the third quarter. "While the majority of the benefits of this deal will be realized in 2024 and beyond, Squarespace believes this deal will be meaningfully accretive to its business from both a revenue and free cash flow perspective over time," the company said in a statement. Shares of Google parent Alphabet Inc. (GOOGL)(GOOGL) were down 0.1% after hours, after rising a little more than 1% in the regular session.

-Wallace Witkowski

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06-15-23 1707ET

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