Squarespace, the renowned website builder platform, has announced a definitive asset purchase agreement with Google. This acquisition entails all assets linked to Google Domains, scheduled for closure after a transition period. The purchase encompasses roughly 10 million domains from Google Domains spread across millions of customers.
Anthony Casalena, Founder & CEO of Squarespace, expressed his delight at the announcement: “We are exceptionally proud to be chosen to serve the customers of the Google Domains business. Domains are a critical part of web infrastructure and an essential piece of every business’s online presence. We look forward to serving these new customers as we have served millions using our domain products and are committed to ensuring a seamless transition.”
Matt Madrigal, Vice President and General Manager, Merchant Shopping at Google, emphasized that a smooth transition for customers with the help of the Google Domains team is the primary focus. He added that Squarespace could offer an integrated experience of purchasing and managing domains and other online presence-building tools that these customers may need.
In terms of the agreement specifics, Squarespace promises to respect the renewal prices for all existing Google Domains customers for at least a year post-transaction closure. In addition, it will provide extra incentives to encourage Google Domains customers to utilize Squarespace for website building and other services. Furthermore, Squarespace will employ Google’s infrastructure that powered the Google Domains product to ensure a seamless domain transfer.
Upon the transaction’s conclusion, Squarespace, a long-standing reseller of Google Workspace, will exclusively provide domains to any customer buying a domain along with their Workspace subscription from Google directly. This exclusivity will last for at least three years. Squarespace will also offer billing and support services to Google Workspace customers who registered for the service via Google Domains. These customers will continue to be free to change their domain accounts at any time.
Scheduled to close in the third quarter of 2023, the transaction is contingent upon specific regulatory approvals and standard closing conditions. Although most of the deal’s benefits will be realized in 2024 and beyond, Squarespace believes this acquisition will significantly contribute to its business from revenue and free cash flow perspectives in the long run.
This shift presents new opportunities for integrated services and streamlined operations for small businesses. With Squarespace’s commitment to providing a seamless transition and respecting existing renewal prices, small businesses can continue to focus on their core operations while adapting to the new platform. Furthermore, the exclusive domain provision in the Google Workspace package will potentially offer a unified and more efficient experience, enabling businesses to build a stronger online presence.
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