Squarespace Inc Stock Price, News & Analysis

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.

Bleichmar Fonti & Auld LLP (BFA) has initiated an investigation into the acquisition of Squarespace (NYSE: SQSP) by Permira, a global private equity firm. The deal, announced on May 13, 2024, involves an all-cash transaction valued at approximately $6.9 billion.

Under the agreement, Squarespace stockholders will receive $44.00 per share in cash. BFA believes that the board of directors of Squarespace may have conflicts of interest and that the process was unfair, potentially resulting in an inadequate payout to shareholders.

Shareholders are encouraged to seek additional information and understand their legal options by visiting BFA’s website or contacting them directly.