NEW YORK – Squarespace, Inc. (NYSE:SQSP), a leading online platform for creating and hosting websites, has announced that it has cleared a significant regulatory hurdle in its transaction with affiliates of Permira Advisers LLC. The Hart-Scott-Rodino (HSR) Antitrust Improvements Act waiting period expired, and the company also received Austrian merger control clearance on June 21, 2024.
The transaction had been previously announced and is now one step closer to completion following these regulatory approvals. The HSR Act is a U.S. antitrust law that requires companies to file pre-merger notifications and observe a waiting period for transactions that meet certain size thresholds, allowing federal antitrust authorities to examine the potential impacts on competition.
Squarespace, headquartered in New York, is incorporated in Delaware and is known for its services in the prepackaged software industry under the SIC code 7372. The company's Class A Common Stock is listed on the New York Stock Exchange, where it trades under the ticker symbol SQSP.
The completion of the waiting period under the HSR Act is a routine part of merger and acquisition processes in the United States. The expiration of this period means that the transaction has not been challenged by antitrust authorities within the waiting period, allowing the parties to proceed with the merger.
This development represents a key step forward for Squarespace in its strategic partnership with Permira, a global investment firm that focuses on driving growth and transformation in its portfolio companies. Details of the transaction's financial terms have not been disclosed in the SEC filing.
The SEC filing, made by Nathan Gooden, Squarespace's Chief Financial Officer and Treasurer, confirms the latest status of the transaction. Investors and stakeholders are now watching closely for the next phases of the deal, which will likely include further integration plans and strategic initiatives post-merger.
In other recent news, Squarespace, Inc. has seen several significant developments. The company has entered into an agreement to sell its subsidiary, Tock LLC, to American Express (NYSE:AXP) Travel Related Services Company, Inc. for $400 million. This sale comes as Squarespace continues to refine its business portfolio, representing a substantial cash infusion from the divestiture of one of its business units.
Additionally, Squarespace's acquisition of Google (NASDAQ:GOOGL) Domains has resulted in a significant increase in subscriber additions, driving subscription growth for the fourth consecutive quarter. This strategic move has led to the company's first quarter financial results for 2024 surpassing expectations, with revenue and unlevered free cash flow exceeding the high end of guidance. These are recent developments that investors should keep an eye on.
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