Permira takes Squarespace Private: Spaceworks Scoop and what this deal means for Squarespace Customers.
Squarespace has been the favourite go-to platform for countless entrepreneurs, organisations and creators looking to build stunning scalable websites over the years. And so when it announced last week that in a deal with Permira, a prominent private equity firm, that it was going private, the news made headlines. The move was valued at a staggering $6.9 billion, which marks the beginning of a new and exciting chapter in Squarespace's history. Since the news went live on the 13th of May, 2024, it has been met with the normal mix of excitement and anxiety among Squarespace website owners. Various online forums and social media platforms have been abuzz as the community speculates about the future of the platform and what it may mean for business owners and website designers in the Squarespace community.
In this article, we will attempt to provide clarity, insights, and perhaps a little reassurance concerning this news. We will discuss Squarespace's acquisition by Permira and its implications on Squarespace users, including our perspective on the opportunities that may lie ahead.
Understanding the Deal
A quick background of the acquisition before we look at the implications. Popular tech media have reported that when the deal between Permira and Squarespace reaches its conclusion, the popular website-creating platform will be departing from the public domain to join the private sector.
Squarespace which was created as far back as 2004 by Anthony Casalena has indeed been a lifesaver for many entrepreneurs, small businesses, and creatives who display their work online. With its intuitive features such as; a user-friendly interface and customizable templates, it has made website building more accessible to millions all over the world.
Announcements from Squarespace say that shareholders are going to receive $44.00 per share all cash. And the founder and CEO, Anthony Casalena, will continue his position as before while retaining “a significant majority of his existing equity” in the company.
However, under Permira’s leadership, many questions arise: What was the reason behind this purchase? What significance does it have for Squarespace's future? And prominently, how does it affect everyone in the Squarespace community? From Official Squarespace Designers like our studio to every day users and the businesses we serve.
Will Squarespace shut down?
The quick answer to that is no! Let's face it when a company announces an acquisition, that is the immediate fear that comes to mind. What if the service shuts down? That is an understandable worry. After all, no one wants to invest time and resources into a platform that might disappear. So let's just address this head-on: that’s not going to happen.
Squarespace hosts millions of websites under its umbrella. And Permira, the private equity firm acquiring Squarespace, is unlikely to have any intention of dismantling a company it just invested $6.9 billion into. David Erlong a partner at Premier apparently agrees since he recently stated this:
“As a firm with a long history of backing leading Internet platforms and technologies that enable SMBs to compete globally, we are excited to partner with Anthony (Squarespace's Founder) and his team to support the company in unlocking its full potential.”
That doesn't sound like a dismantling at all, especially when you consider that Casalena is to remain as CEO of the newly acquired Squarespace. In fact, such a significant investment by Permira can only mean a long-term commitment to the platform’s growth and success just as Erlong said. Think of it like when Microsoft acquired LinkedIn and kept the CEO, the merging of both companies caused LinkedIn's user base to grow by almost 50% in 3 years. Permira is also keeping the current CEO who has already done a great job with keeping Squarespace on the rise. LinkedIn’s growth after the acquisition of the platform has been heavily attributed to that move and it could potentially be the same for Squarespace.
More than anything, Permira’s acquisition of Squarespace is likely to bring new opportunities for innovation and growth, ensuring that Squarespace remains a top choice for web designers and developers. So, take a deep breath and know that your website is in safe hands.
Squarespace isn’t going anywhere, and you can continue to trust us with building and scaling your online presence with this powerful platform.
Squarespace is likely to experience more growth
Based on the above statements and commitments from both firms, we can expect that Squarespace is about to experience even more rapid growth. A company such as Permira - with its capital base and experience - is uniquely positioned to inject substantial capital into Squarespace that will greatly fuel its growth and development. For website owners, this influx of resources will translate into tangible benefits. We can expect to see newer features, faster adoption of AI tools and a better customer support system.
After all, Squarespace has already demonstrated its commitment to innovation with its recognition as top 10 most innovative companies in retail last year. This trend is likely to continue with Permira's backing. More resources mean Squarespace can invest in better infrastructure, advanced technology, and expanded product offerings. They may enhance existing tools or introduce new solutions, whatever they decide, we already know the goal is to empower users to create even more impactful websites and online experiences.
A Squarespace site that is more powerful, flexible, and efficient enables Squarespace customers to achieve their online goals more effectively.
More Future Benefits to look out for
With Squarespace transitioning to private ownership, there is the promise of a radical shift in focus from short-term financial performance to long-term strategic goals. Under the stewardship of Permira, the platform can prioritise scalability, efficiency, and profitability without the stress of quarterly earnings. This shift will likely allow for a more deliberate approach to product development and market expansion and ensure that Squarespace remains at the forefront of website-building technology.
Additionally, Permira's involvement is sure to bring with it a wealth of experience in supporting companies through strategic growth initiatives. Not to mention that General Atlantic and Accel, Squarespace's long-term investors are set to reinvest as part of the agreement to go private. All of these combined will enable Squarespace to explore new avenues for expansion and innovation.
In Summary
What does this mean for your Squarespace Website?
There are unlikely to be any immediate significant changes since Squarespace will likely continue to operate as usual while Permira evaluates the business and decides on any future eventualities. Since the deal isn't expected to close until late 2024, any noticeable changes may not occur until 2025.
In light of Permira's impressive history, it's likely that Squarespace will prioritise scaling up operations, streamlining processes, and boosting their bottom line under the new ownership. Users can expect a more powerful and feature-rich platform, though this may come with a price increase (hopefully not).
In conclusion, despite the change in ownership, Squarespace remains what it has always been, a robust and innovative platform for building and managing websites.
The acquisition by Permira only presents more opportunities for enhanced investment, improved infrastructure, and long-term strategic growth. Moreso since Permira partners have only expressed the vision of contributing to the growth of Squarespace, all we can do as a community now is to stay informed about any potential changes or developments within the Squarespace ecosystem. We must, of course, remain adaptable and proactive while leveraging the platform's tools and resources to build our online ventures.
Details of the announcement:
Squarespace:
https://investors.squarespace.com
Permira:
