Johnson Fistel investigates Squarespace merger amid valuation concerns

On September 16, 2024, Johnson Fistel, LLP, a prominent stockholder rights law firm, initiated an investigation into Squarespace, Inc. concerning its proposed acquisition by private equity firm Permira. The deal, announced on May 13, 2024, offers shareholders $44.00 per share in an all-cash transaction, which would result in Squarespace becoming a private entity. The investigation focuses on whether the board of directors acted in the best interests of shareholders and adequately explored alternative options before agreeing to the sale. Glazer Capital LLC has publicly criticized the merger, asserting that the offered price is significantly undervalued. They contend that the fairness opinion provided to the board lacked essential industry-standard methodologies for transaction valuation analysis, which could lead to a detrimental outcome for minority shareholders. Glazer Capital's concerns highlight the potential for a flawed process that may favor controlling shareholders and the acquiring firm. The investigation by Johnson Fistel aims to assess the board's actions and whether they fulfilled their fiduciary duties to shareholders. Analysts have noted that Squarespace shares have historically traded at higher prices, raising questions about the adequacy of the proposed offer. As a result, stockholders are encouraged to reach out to Johnson Fistel to understand their legal rights and options regarding the merger. The upcoming Special Meeting will be crucial, as Glazer Capital has expressed its intention to vote against the acquisition. This situation underscores the importance of shareholder rights and the need for transparency in corporate transactions, particularly when significant changes in ownership are proposed.