Permira has agreed to increase its offer price to take website-design software company Squarespace (NYSE: SQSP) 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 vote against Permira’s proposed transaction.
ISS had raised concerns that the sale process did not maximize shareholders’ value, 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 before 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 (NYSE: SQSP) 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.
In May, Squarespace said 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.
(Source: Reuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
