Square to acquire website builder startup Weebly for $365 million
Square just announced an agreement on Thursday to buy website-building company Weebly for $365 million. The acquisition will be a mix of cash and stock of approximately $365 million, the company announced on its website before its release financial results for the first quarter of 2018 scheduled for May 2, 2018. This is Square’s largest acquisition to date. It gives the company access to Weebly’s millions of customers and more than 625,000 paid subscribers. The acquisition will enable sellers to easily start or grow an omnichannel business with one cohesive solution. The deal is expected to close in the second quarter of 2018.
Weebly is a San Francisco–based technology company that provides customers with tools to easily build a professional website or online store. Founded in 2007 by Chris Fanini, Dan Veltri and David Rusenko, Weebly is a website and eCommerce platform. Their tools let customers build beautiful, mobile-optimized sites, sell their products and manage eCommerce, even grow their business with integrated marketing tools. Weebly currently powers more than 50 million entrepreneurs around the world. Weebly is based in San Francisco and is proud to be back by Sequoia Capital, Tencent Holdings, Baseline Ventures, Floodgate, Felicis, Ron Conway and Y Combinator.
Square and Weebly will give sellers one cohesive solution to start or grow an omnichannel business. Today, it is important that sellers can reach buyers as they move between channels (in person, online, in apps) during discovery, purchase, and even returns and exchanges. An integrated suite of services will make critical business tasks like engaging with customers, managing orders, growing sales, and making informed business decisions easier than ever for sellers.
“Square and Weebly share a passion for empowering and celebrating entrepreneurs,” said Jack Dorsey, CEO of Square. “Square began its journey with in-person solutions while Weebly began its journey online. Since then, we’ve both been building services to bridge these channels, and we can go even further and faster together.”
“Omnichannel commerce is our top focus area in 2018,” said Alyssa Henry, Seller Lead at Square. “From managing orders, appointments, and payments to building a website, running a business is complex, and entrepreneurs around the world want powerful and intuitive tools. Whether they’re an artist, a winemaker, or a hairdresser, with Square and Weebly sellers will have one cohesive solution to build their business.”
“Entrepreneurship gives an opportunity to people who were never given one,” said David Rusenko, CEO of Weebly. “Weebly has created technology that helps people bring their business idea to life online. Now, we will be expanding that vision to help entrepreneurs succeed beyond their website. I’m excited for Weebly to join Square and help build the future of commerce together.”
Weebly will expand Square’s customer base globally and add a new recurring revenue stream. Weebly has millions of customers and more than 625,000 paid subscribers. Square will provide Weebly customers with access to the company’s ecosystem of managed payments, hardware, and software, which complement Weebly’s services, which include free website hosting, premium (paid) website design and hosting, online store, and marketing tools. Nearly 40% of Weebly’s paid subscribers are outside the U.S., which will help accelerate Square’s global expansion.
Square will continue to provide an open platform to offer sellers the flexibility to select and integrate the third-party solutions that are best for their business. Square offers more than 100 partner integrations across a range of third-party apps, including points of sale, accounting software, and other back-office systems.
The completion of this transaction is subject to customary closing conditions including regulatory approvals. The parties expect to close the transaction during the second quarter of 2018, and until close the two companies will continue to operate independently. Square was advised by Wilson Sonsini Goodrich & Rosati and Weebly was advised by Cooley LLP and Qatalyst Partners.
Square is a mobile payments company founded in 2009 by Jack Dorsey (also co-founder and CEO of Twitter) and Jim McKelvey. They launched their first app and service in 2010. Square has been traded as a public company on the New York Stock Exchange since November 2015.