Squarespace is taken private in a $6.9B deal, as private equity closes the public tab
A million Adam Drivers… and a website that makes websites that’s going private in a $6.9B deal. Private-equity firm Permira is taking DIY website-builder Squarespace off the NYSE, three years after the tech co went public shortly after hitting a $10B valuation. While the Wix-rival hasn’t recaptured its 2021 peak, its value has recovered from 2022 lows after it notched $1B+ in revenue last year. Permira will pay Squarespace investors $44/share — $6 more than its price before the deal was announced.
Less square, more space: Squarespace said going private would give it more flexibility and resources. Private cos don’t need to publicly report their #s or follow many other rigorous rules required of public companies (think: public Twitter vs. private X).
PE class… Private-equity firms are the “Property Brothers” of corporate finance. But instead of houses they flip corporations. PE firms often snatch up companies with rocky performance in the hope of boosting profitability and selling them for more later. (They’re also big venture-capital investors.) While PE buyouts declined last year, there’ve been some big deals recently. Permira’s Squarespace buyout is the year’s second largest behind Silver Lake’s $13B deal to take WWE parent Endeavor private last month. PE firms have also spent billions on cybersecurity and software companies this year.
Cautious optimism is in… After 2023’s dealmaking drought, PE firms are scooping up companies that went public during pandemic market peaks. At the same time, more companies are going public, signaling that market optimism’s rising. But dealmakers seem to be more practical than they were in the Peloton era, with a focus on profitability both for IPOs and for buyouts — or at least a plausible path to it.