Permira raises Squarespace’s takeover bid to $7.2 billion

Private equity firm Permira has increased its buyout offer for website design software company Squarespace by $300 million, raising the total to $7.2 billion, the companies announced on Monday.

This increase comes just four months after Squarespace announced plans to go private in a $6.9 billion all-cash deal with Permira. The new offer proposes $46.50 per share in cash for Squarespace stockholders, up from the previous offer of $44 per share.

The revised bid follows a recommendation from proxy advisory firm Institutional Shareholder Services (ISS) urging Squarespace investors to reject the initial proposal. Permira’s latest offer represents a 36.4% premium over the stock’s closing price on May 10, the last trading day before the initial deal announcement.

The new bid exceeds Squarespace’s Friday closing price, which was already above the original offer. The transaction has been approved by a special committee of Squarespace’s board and is being conducted as a tender offer, Reuters reported.

Squarespace had stated in May that going private would provide greater flexibility and resources to further support entrepreneurs in building strong online brands and facilitating customer transactions.

ISS had expressed concerns that the sale process might not fully capture the company’s value, given Squarespace’s strong performance and positive outlook. Permira’s increased offer highlights its continued interest in Squarespace, which assists businesses in digitizing operations and enhancing branding as more companies transition online. Squarespace was valued at $6.5 billion during its market debut in May 2021.

In June 2023, Squarespace, known for helping entrepreneurs create and grow their online presence, acquired Google’s domain business in a $180 million deal, with financing from JPMorgan Chase.