Permira raises takeover offer for Squarespace to $7.2 bln (updated)

Squarespace

09/09/2024 13:51

(Adds details and background throughout)
       Sept 9 (Reuters) - Permira has agreed to increase its
offer price to take website-design software company Squarespace
 SQSP.N  private, now valuing the deal at $7.2 billion, the
companies said on Monday.
    The private equity firm will offer $46.50 per share in cash
to Squarespace stockholders, compared with its earlier proposal
of $44 apiece.
    The revised bid comes days after proxy advisory firm
Institutional Shareholder Services recommended Squarespace
investors to vote against Permira's proposed transaction.
    ISS had raised concerns that the sale process did not
maximize value for shareholders, given Squarespace's strong
operational results and outlook.
    Permira's new offer underscores its keen interest in
Squarespace, which helps enterprises digitize their operations
and enhance branding as more companies move online to drive
growth.
    Squarespace was valued at $6.5 billion in its market debut
in May 2021.
    The revised offer represents a premium of 36.4% to the
stock's closing price on May 10, the last trading day prior to
the announcement of the original deal.
    Permira's latest bid is higher than Squarespace's closing
price on Friday, which was already above the original offer.
    Shares of Squarespace were up 2% at $46.23 in premarket
trading.
    The transaction has been approved and recommended by a
special committee of Squarespace's board of directors and is
structured as a tender offer.
    Squarespace said in May upon going private, it would have
the flexibility and resources to invest in enabling
entrepreneurs to build better online brands and more easily
transact with their customers.

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi
Majumdar)
 ((Zaheer.Kachwala@thomsonreuters.com))