In earlier discussions, Casalena had expressed the challenges of being a public tech company and voiced uncertainty about the private equity landscape.

Despite the acquisition, a proxy advisory firm had previously recommended that Squarespace shareholders reject the initial offer, citing the company's strong financial outlook.

Permira Partner David Erlong emphasized that the investment acknowledges Squarespace's strong relationships with small businesses and entrepreneurs.

The acquisition was initially announced in May 2024, with a proposed sale price of $6.9 billion, but after negotiations, the final sale price increased to $7.2 billion.

Permira's bid represented a 36.4% premium over Squarespace's average share price in the three months leading up to the announcement.

Anthony Casalena, the founder and CEO of Squarespace, will continue to lead the company as CEO and chairman, retaining a substantial majority of his equity.

Permira successfully acquired the majority of shares and completed a second-step merger for the remaining outstanding shares.

Squarespace has officially transitioned from a publicly-traded company to private ownership following its acquisition by private equity firm Permira.

Squarespace, founded in 2004, went public in 2021 but faced a market cap drop to $2 billion in 2022 before recovering to over $5 billion due to strong earnings.

On the same day as the acquisition announcement, Squarespace also finalized the sale of its restaurant reservation service Tock to American Express for $400 million.