FOLLOW US

Squarespace Inc. announced Monday that it has amended its previous take-private buyout agreement with Permira, increasing the total transaction value to $7.2 billion, up from the original $6.9 billion. The revised offer raises the per-share price to $46.50 in cash, compared to the earlier offer of $44 per share made in May.

Squarespace Gets $7.2B Offer From Permira : Deal Enhancements and Stock Reaction

The new proposal represents a 36.4% premium over Squarespace's 90-day volume-weighted average trading price as of May 10, prior to the initial deal. Following the announcement, Squarespace's stock rose over 2% to $46.23 per share.

The amended offer was unanimously approved by a special committee of Squarespace's board. The committee's chair, Michael Fleisher, emphasized that the updated offer was the result of a "deliberate and thoughtful process" aimed at maximizing value for all shareholders.

Shareholder Pushback and Final Offer

The adjustment comes after proxy advisory firm Institutional Shareholder Services (ISS) recommended that investors vote against the original proposal, arguing that it did not fully maximize shareholder value despite its premium. ISS highlighted Squarespace's strong growth prospects as a reason to reconsider the deal.

Permira, a London-based private equity firm, reiterated that the revised offer is its "best and final" bid, aiming to capitalize on the growth ISS had highlighted. David Erlong, partner at Permira, stated that the final offer provides Squarespace shareholders with immediate and certain value, urging them to tender their shares.

Squarespace Gets $7.2B Offer From Permira : Minority Shareholder Concerns

However, the deal still faces some resistance. Glazer Capital LLC, which holds 5.4% of Squarespace’s stock, previously voiced concerns about the fairness of the sale process. Glazer has not yet responded to the updated terms.