Home Private Equity Private equity company to acquire Squarespace – Domain Name Wire

Private equity company to acquire Squarespace – Domain Name Wire

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Still image from 2024 Squarespace Super Bowl commercial shows UFOs over a city with the words "A website makes it real"

Deal values one of the largest domain name registrars at $6.9 billion.

Still image from 2024 Squarespace Super Bowl commercial shows UFOs over a city with the words "A website makes it real"
Squarespace, a frequent Super Bowl advertiser (this still is from its 2024 ad), is going private.

One of the world’s largest domain name registrars is about to go private.

Squarespace, Inc. (NYSE: SQSP) announced that it’s being acquired by Permira in an all-cash transaction valued at $6.9 billion.

Existing shareholders will receive $44 cash per share, which is a 15% premium over where the stock closed the day before the deal was announced. It is a 29% premium over the 90-day volume-weighted average trading price.

While Squarespace is mostly known for its website builder, it became a top five domain name registrar last year with the acquisition of Google Domains.

Although new registrations have dropped since Google Domains started pointing people to Squarespace, the company says the business is performing well. It seems to have stemmed registration losses in January.

Private equity companies have long coveted domain name and website businesses because of their recurring revenue.

Clearlake Capital took Endurance International Group private in 2020, and a consortium of private equity companies acquired GoDaddy in 2011 before taking the company public.

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