Strategic View: Permira completes its $7.2 billion take-private of Squarespace at $46.50 per share after raising its initial bid following ISS pushback. Accel and General Atlantic roll over significant equity stakes, creating a true club structure with legacy VCs remaining invested post-transaction.
Full story: The SaaS consolidation wave claims another casualty—or victor, depending on your perspective. Permira, the global PE firm, took website builder Squarespace private in an all-cash $7.2 billion transaction, one of 2024’s largest software deals. But here’s where it gets interesting: this was a Legacy VC Club Rollover. Accel and General Atlantic, early backers who took Squarespace public in 2021, chose to reinvest rather than cash out—a strong vote of confidence in Permira’s value creation plan.
Squarespace helps small businesses and creators build online presences without coding. The platform generates recurring revenue from subscriptions, with sticky customers who view website infrastructure as mission-critical. Public markets had hammered the stock, concerned about growth deceleration and rising customer acquisition costs. Permira saw an opportunity to optimize marketing spend, integrate AI-powered design tools, and pursue M&A without Wall Street’s quarterly obsession.
The $46.50 price came after proxy advisor ISS recommended rejection of Permira’s initial $44 offer, arguing the company’s operational strength and favorable outlook warranted higher valuation. This repricing demonstrates the Club Negotiation Dynamic—when multiple sophisticated parties (target board, PE bidder, legacy VCs) align interests, valuations can reset upward. Founder Anthony Casalena rolled over “a substantial majority” of his equity, remaining one of the largest shareholders and continuing as CEO.
For club participants, this is a classic Growth SaaS at Inflection play. The company was profitable, generating strong cash flow, but trading at depressed multiples due to macro headwinds. By going private with a collaborative ownership structure, Squarespace can invest in product innovation, international expansion, and ecosystem partnerships without the distraction of earnings calls. Expect an exit in 5-6 years via IPO or strategic sale to Adobe, Shopify, or Wix.
Summary: Permira’s $7.2 billion Squarespace take-private is a club deal featuring legacy VC rollovers, founder retention, and a premium secured through proxy advisor pressure. This demonstrates how sophisticated clubs navigate valuation disputes while aligning incentives across founders, financial sponsors, and strategic investors in profitable SaaS businesses.
Source: Permira, TechCrunch, Squarespace
