Sept 9 (Askume) – Permira said on Monday it had agreed to raise its offering price to take website design software company Squarespace (SQSP.N) private, currently valuing the deal at $7.2 billion.
The private equity firm will offer Squarespace shareholders $46.50 per share in cash, up from a previous offer of $44 per share.
A few days ago, proxy advisory firm Institutional Shareholder Services recommended that Squarespace investors vote against Permira ‘s proposed deal.
ISS is concerned that the sale process is not maximizing value to shareholders given Squarespace’s strong operating performance and prospects.
Permira’s new product highlights its strong interest in Squarespace, which can help companies digitize their operations and enhance their brand image as more companies move online to drive growth.
Squarespace went public in May 2021 with a $6.5 billion valuation.
The revised offer represents a 36.4% premium to the stock’s closing price on May 10, the last trading day before the original deal was announced.
Permira’s latest bid is higher than Squarespace’s closing price on Friday, which was already higher than its original offer.
Squarespace shares rose 2% to $46.23 in premarket trading.
The transaction has been approved and recommended by a special committee of Squarespace’s board of directors and is being conducted as a tender offer.
Squarespace said in May that when it goes private, it will have the flexibility and resources to invest in helping entrepreneurs build better online brands and more easily transact with customers.
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