Squarespace Buyout Bonanza: Time to Cash Out as Permira Takes Over!

Bid farewell to public trading, Squarespace fans! In a surprise twist, the web-building giant is going private, courtesy of a $6.9 billion handshake with Permira. Get ready for the same Squarespace charm, just without the stock tickers. #TechGoingPrivate

Hot Take:

Remember when going public was the tech world’s equivalent of a moon landing? Well, strap in, because we’re blasting off back to planet Private Equity! Squarespace is the latest to ditch the stock market’s roller coaster for the cushy ride of a private equity firm’s limo. And at $6.9 billion, that’s one heck of a fare! Permira, the UK-based firm, is now the captain of this web-building starship. Fasten your seatbelts, creatives and entrepreneurs; your website’s control panel might not change, but the business behind it is going hyperdrive into the private sector!

Key Points:

  • Squarespace is getting cozy with Permira, a private equity firm, in a $6.9 billion all-cash snuggle fest that takes the company private.
  • Bye-bye, NYSE! Stockholders get a goodbye kiss of $44 per share, a 29% premium over the average trading price.
  • Founded in 2003, Squarespace is the internet’s silver medalist in website hosting in the U.S., second only to Shopify.
  • Permira has a thing for tech take-privates, recently adding Zendesk and Darktrace to its tech harem.
  • CEO Anthony Casalena isn’t going anywhere, so the Squarespace ship will sail steady… for now.

Need to know more?

Stocks and Shocks

Remember when you could snag a piece of your favorite website builder on the stock market? Ah, nostalgia. Squarespace, the darling of DIY web designers, decided that the public spotlight was so 2021. Instead, it's opting for the mysterious allure of being a private entity. Stockholders, it's time to say your goodbyes and cash in those chips. With a 29% premium, it's not the worst break-up. Think of it as a parting gift for your investment journey.

Who's Hosting the Party Now?

So, who's behind this multibillion-dollar shindig? Enter Permira, with its British charm and a penchant for tech companies. This isn't their first rodeo; they've been collecting tech companies like rare Pokémon cards. Zendesk and Darktrace are already in their Pokedex, and now they've got Squarespace in their sights. With over 3.3 million websites under its belt, Squarespace is no small catch. But don't worry, your favorite website builder isn't going to turn into a pumpkin; it's still the same platform, just with a new sugar daddy.

The Unchanging Change

Amidst the financial razzle-dazzle, one thing remains constant: Anthony Casalena. The founder and CEO of Squarespace is sticking around like that one house guest who just can't say goodbye. So for all you web wizards and e-commerce enchanters out there, the spells and potions of website creation remain unchanged. But as we've seen in the tech world, today's certainty is tomorrow's 'What the heck happened?' Stay tuned for the next episode of 'As the Tech World Turns'.

Reverse Engineering the IPO

What's with tech's latest trend of playing hide and seek with the public market? It's like a financial game of Marco Polo, and going private is the new 'Polo!' Squarespace's leap into Permira's arms is a part of a broader tech trend that's flipping the script. Even Elon Musk pulled a Houdini with Twitter, now known as X. TechCrunch is raising eyebrows at this recent fad, but for the average Squarespace user, it's business as usual... until it isn't.

The Private Party

While the public market watches through the window like a forlorn ex, Squarespace and its new private equity beau are off to the honeymoon suite. If you're a Squarespace stockholder, don't cry over the ticker tape; your shares are getting a 29% markup as a farewell gift. Just don't spend it all in one place—or do, because who am I to tell you how to live your life? In the end, it's yet another reminder that in tech, the only constant is change—and cash. Lots and lots of cash.

Tags: Permira Private Equity, Squarespace Acquisition, Stock Market Activity, Take-Private Deals, Tech Company Valuation, tech industry trends, Website Hosting Services