Squarespace: Acquired by Private Equity Firm Permira; Valuation to Takeover Price of $44 Per Share

No-moat Squarespace announced the company will be acquired by private equity firm Permira for $44 per share in a cash transaction valued at $6.9 billion, including outstanding debt. Accordingly, we have adjusted our fair value estimate to the takeover price of $44 per share. The purchase price represents a 15% premium to Squarespace’s closing stock price on May 10, 2024, and an attractive 49% premium to our standalone per share fair value estimate of $29.50. The acquisition is expected to close by the fourth quarter of 2024, subject to regulatory approval and approval from remaining Squarespace shareholders. The deal has already been unanimously approved by Squarespace’s board of directors, as well as founder and CEO Anthony Casalena and investment firms General Atlantic and Accel, which together hold about 90% of the voting rights. Given the premium being paid by Permira, we think this is a good deal for Squarespace’s existing shareholders.