Welcome to our dedicated page for Squarespace news (Ticker: SQSP), a resource for investors and traders seeking the latest updates and insights on Squarespace stock.
Squarespace, Inc. (NYSE: SQSP) is a leading provider of subscription-based website building and hosting services, primarily catering to entrepreneurs and small businesses. Since its inception, the company has empowered millions of users in over 200 countries and territories with comprehensive tools necessary to create an online presence, build an audience, monetize content, and scale their businesses.
Squarespace's core products include websites, domains, e-commerce solutions, and marketing tools. Additionally, it offers specialized functionalities such as scheduling through Acuity, social media management via Bio Sites and Unfold, and hospitality business management through Tock. The company has significantly expanded its capabilities following the acquisition of Tock in 2021, which allowed Squarespace to serve hospitality customers by providing reservation, take-out, and event management software.
In 2023, Squarespace achieved a milestone by surpassing $1 billion in revenue for the first time in its 20-year history. This growth was driven by strong customer retention and new customer acquisition across diverse markets. Key developments during the year included the acquisition of Google Domains, the launch of Squarespace Payments, and the introduction of new AI capabilities aimed at enhancing the user experience and expanding accessibility for entrepreneurs at various stages of their journey.
Financially, Squarespace demonstrated robust performance with consistent execution and innovation. The company has been actively repurchasing its Class A common stock, with a $500 million authorization underscoring its financial momentum and commitment to delivering shareholder value. In line with its growth strategy, Squarespace continues to focus on increasing profitability and leveraging its ecosystem to further attract and retain users.
Looking ahead, Squarespace has announced its intention to go private through an all-cash transaction valued at approximately $6.9 billion, led by global private equity firm Permira. This move aims to provide more flexibility and resources to invest in the company's long-term growth and further support its mission of helping entrepreneurs build better online brands and transact more efficiently with their customers. Upon completion, Squarespace's common stock will no longer be publicly listed, marking a significant transition in the company's journey.
Permira, a global investment firm, has successfully completed its cash tender offer for outstanding shares of Squarespace (NYSE: SQSP). The tender offer expired on October 11, 2024, with 46,971,451 shares validly tendered. Combined with shares rolled over or sold directly by affiliates, this represents approximately 97.5% of the aggregate voting power of Squarespace's total outstanding shares.
The tendered shares included about 77.7% of the voting power held by unaffiliated shareholders. All validly tendered shares will be accepted for purchase on October 15, 2024. Permira funds will proceed with a second-step merger, converting remaining shares to cash at the tender offer price. Upon completion, expected on October 17, 2024, Squarespace will become a privately held company.
Permira has successfully completed its cash tender offer for outstanding shares of Squarespace (NYSE: SQSP). The offer expired on October 11, 2024, with 46,971,451 shares validly tendered. Combined with shares from affiliates, this represents 97.5% of Squarespace's total voting power, including 77.7% from unaffiliated shareholders.
All validly tendered shares will be accepted for purchase on October 14, 2024. Permira will proceed with a second-step merger, converting remaining shares to cash at the tender offer price. The transaction is expected to complete on October 17, 2024, making Squarespace a private company.
Financial advisors include J.P. Morgan for Squarespace, Centerview Partners for the Special Committee, and Goldman Sachs & Co for Permira. Blackstone Credit & Insurance, Blue Owl Capital, and Ares Capital Corp are acting as Joint Lead Arrangers on the debt financing.
Squarespace (NYSE: SQSP) has announced Refresh 2024, introducing new products and features to empower entrepreneurs. The company unveiled Design Intelligence, a suite of AI-powered tools including the enhanced Blueprint AI for website creation. Other key features include:
- Layout Switcher for faster design experimentation
- Site Themes for one-click styling
- Brand Identity Management for AI-generated content
- Improved client invoicing with ACH direct deposits
- Expanded Squarespace Payments with Klarna integration
- New content monetization options
- Enhanced donation tools
- Improved marketing automation
- Updated Domains Dashboard and Acuity Scheduling features
- Product Links for Bio Sites
These innovations aim to streamline business operations and boost creativity for entrepreneurs using the Squarespace platform.
Squarespace (NYSE: SQSP) and Permira have amended their merger agreement, increasing the offer price to $46.50 per share in cash. This represents a 5.7% increase over the previous offer of $44.00 per share and a 36.4% premium over Squarespace's 90-day volume weighted average trading price. The revised transaction, valued at approximately $7.2 billion, is structured as a tender offer and requires a majority of unaffiliated stockholders to tender their shares.
The amendment was unanimously approved by a Special Committee of Squarespace's Board of Directors and the full Board. Upon completion, Squarespace will become a privately-held company. The special meeting of stockholders scheduled for September 20, 2024, has been canceled, and the company will issue a Recommendation Statement on Schedule 14D-9 within nine business days.
Glazer Capital, owning 5.4% of Squarespace's (NYSE: SQSP) minority shares, opposes the proposed $44.00 per share acquisition by Permira. They argue that:
1. The fairness opinion omitted key valuation analyses, potentially undervaluing Squarespace.
2. The acquisition process favored the controlling shareholders and Permira.
3. Permira received exclusive information about the $400 million Tock sale.
4. The 15% premium is inadequate compared to competitors' stock appreciation.
Glazer Capital intends to vote against the acquisition, citing concerns about the process fairness and insufficient merger consideration. They urge the Board to reconsider its recommendation.
Squarespace (NYSE: SQSP) reported strong Q2 2024 financial results, with total revenue growing 20% year-over-year to $296.8 million. Presence revenue increased by 25% to $215.4 million, while Commerce revenue grew 8% to $81.4 million. The company's net income rose to $6.1 million, compared to $3.7 million in Q2 2023. Cash flow from operating activities increased by 15% to $60.6 million.
Key metrics showed positive trends, with total unique subscriptions increasing 21% to over 5.2 million and average revenue per unique subscription (ARPUS) growing 3% to $225.45. Squarespace also announced agreements to go private with Permira and to sell Tock to American Express for $400 million.
Squarespace (NYSE: SQSP), the design-driven platform for online brand and business building, has announced it will release its second quarter 2024 financial results on Friday, August 2, 2024, before the market opens. This report will cover the financial period ending June 30, 2024. Notably, due to the company's pending privatization agreement with Permira, Squarespace will not be hosting an earnings conference call or live webcast to discuss these results. This change in reporting practice is a direct consequence of the company's transition from public to private ownership.
Squarespace (NYSE: SQSP) has announced an agreement to sell its Tock platform to American Express (NYSE: AXP) for $400 million. Tock, a provider of reservation, table, and event management technology, will enhance American Express' dining program and expand its network of diners. The deal signifies American Express' continued commitment to the hospitality industry. Both companies will collaborate to offer additional value to small businesses using American Express Cards via the Amex Offers program. The transaction is pending customary closing conditions, including regulatory approval.
American Express (NYSE: AXP) announced the acquisition of Tock, a reservation and event management technology provider, from Squarespace (NYSE: SQSP), and Rooam, a mobile payments and ordering technology company. These acquisitions aim to enhance Amex's dining platform, expanding its suite of digital tools for restaurants and merchants. With Tock's network of 7,000 restaurants and Rooam's integration capabilities, Amex will offer more personalized hospitality, pre-paid experiences, and convenient payment methods. Amex will acquire Tock for $400M, while the financial details for Rooam remain undisclosed. These deals are part of Amex's strategy to support the growth of the dining and entertainment industries.
On May 13, 2024, Squarespace (NYSE: SQSP) announced an agreement to be acquired by Permira, a global private equity firm, in an all-cash transaction valued at approximately $6.9 billion. Under the deal, Squarespace shareholders will receive $44.00 per share in cash. However, Bleichmar Fonti & Auld LLP (BFA) is investigating the fairness of the deal, suspecting conflicts of interest and an unfair process by the board of directors. BFA encourages shareholders to seek additional information and explore legal options, with representation offered on a contingency fee basis.
FAQ
What is the current stock price of Squarespace (SQSP)?
What is the market cap of Squarespace (SQSP)?
What is Squarespace, Inc.?
What are the core products offered by Squarespace?
How did Squarespace perform financially in 2023?
What significant acquisitions has Squarespace made recently?
What is the recent announcement regarding Squarespace going private?
Who is leading the transaction for Squarespace to go private?
What is Squarespace’s approach to shareholder value?
What new features did Squarespace introduce in 2023?
How does Squarespace support international customers?
What is the significance of the Squarespace and Permira transaction?
