square area (New York Stock Exchange: SKXP) said Monday it has entered into a definitive agreement with private equity firm Permira, going private in an all-cash deal valued at about $6.9 billion, building out the website and hosting company. Shares rise 13% In early trade.
Under conditions Agreement, Squarespace (SQSP) Shareholders will receive $44.00 per share in cash, representing a transaction valued at more than $6.6 billion on an equity value basis, and approximately $6.9 billion on an enterprise value basis, The company said in a statement.
The purchase price represents a 15% premium over Squarespace's closing stock price of $38.19 on the New York Stock Exchange on May 10.
Squarespace CEO Anthony Casalina will renew a significant majority of his existing shares and will remain one of the largest shareholders after this deal, the company said. He will continue to serve as CEO and Chairman of Squarespace, leading the business in all aspects of its operations, alongside Squarespace's existing leadership team.
Due to the pending transaction, which is expected to close by the fourth quarter of 2024, the company will no longer hold its previously announced Investor Day scheduled for May 15.
Shares of Squarespace (SQSP) peer Wix.com (WIX) rose. +1.75% to $124.40 In pre-market trading.