Squarespace's stock climbs after buyout bid boosted to $7.2 billion

By Tomi Kilgore

Permira raised bid per share by 5.7% to $46.50, which is a price the stock hasn't seen since November 2021

Shares of Squarespace Inc. rallied toward a three-year high in premarket trades Monday, after private-equity firm Permira raised its buyout bid for the online brand-building platform.

The new bid of $46.50 a share is 5.7% above the previous bid of $44 a share. That raised the value of the deal to $7.2 billion from $6.9 billion.

Squarespace's stock (SQSP) rose 2% in premarket trading, putting it on track to open at the highest price seen since November 2021.

Permira's bid for Squarespace shares is structured as a tender offer. The amendment was unanimously approved by a special committee composed of independent directors of the company's board.

The committee recommended shareholders accept the tender offer.

The original agreement was announced on May 13, 2024. At that time, the companies expected the deal to close by the fourth quarter of 2024.

"Our core focus has been maximizing value and certainty for the unaffiliated stockholders," said Michael Fleisher, chairman of the special committee. "This transaction is the result of a deliberate and thoughtful process and ultimately represents a great outcome that is in the best interest of Squarespace and all of its stockholders."

Squarespace's stock had closed Friday at $45.30, or 3% above the original buyout bid's price. It has run up 37.2% year to date, while the S&P 500 index SPX has gained 13.4%.

-Tomi Kilgore

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09-09-24 0818ET

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