Squarespace Inc., a leading design-driven platform for building brands and businesses online, has announced a definitive asset purchase agreement with Google to acquire the assets associated with the Google Domains business.
The acquisition includes approximately 10 million domains hosted on Google Domains and aims to enhance Squarespace’s domain business and expand its platform offerings. This article provides an overview of the agreement, its implications, and the benefits it offers to customers.
Acquisition Details
Squarespace has entered into a definitive asset purchase agreement with Google to acquire the assets associated with the Google Domains business. As part of the agreement, Squarespace will take over approximately 10 million domains hosted on Google Domains, spread across millions of customers. Google Domains will wind down its operations after a transition period.
Smooth Transition for Customers
Squarespace is committed to ensuring a seamless transition for the customers of the Google Domains business. The company will honor all existing Google Domains customers’ renewal prices for at least 12 months after closing the transaction. Additionally, Squarespace will incentivize Google Domains customers to build their online presence using Squarespace and adopt other Squarespace offerings.
Integration of Services
Squarespace will leverage Google’s infrastructure powering the Google Domains product during the migration period to facilitate the smooth transfer of domains. As a long-time reseller of Google Workspace, Squarespace will become the exclusive domain provider for customers purchasing a domain alongside their Workspace subscription directly from Google for at least three years. Squarespace will also provide billing and support services to Google Workspace customers who signed up through Google Domains.
Anticipated Benefits
The transaction will close in the third quarter of 2023, subject to regulatory approvals and customary closing conditions. While most of the benefits will be realized in and after 2024, Squarespace believes the acquisition will have a meaningful impact on its business from both a revenue and free cash flow perspective over time.
Expanded Platform Offerings
With the acquisition of Google Domains assets, Squarespace aims to enhance its domain business and expand its platform offerings. In addition to websites and domains, Squarespace provides e-commerce, marketing tools, scheduling tools with Acuity, social media management with Bio Sites and Unfold, and hospitality business management through Tock. By integrating Google Domains’ assets, Squarespace can offer a comprehensive suite of services to entrepreneurs, empowering them to build their brands and businesses online.
Conclusion
Squarespace’s definitive agreement to acquire Google Domains assets significantly expands its domain business and platform offerings. The acquisition of approximately 10 million domains hosted on Google Domains will enable Squarespace to serve a broader customer base and provide a seamless transition for Google Domains customers. Squarespace aims to strengthen its position as a leading design-driven platform through this strategic move, empowering entrepreneurs worldwide to establish and grow their online presence.
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