Last week, Jack Dorsey’s Square announced it has entered into a definitive agreement to acquire Weebly. The company reported it will pay a mix of cash and stock of approximately $365 million, which will include Square restricted stock units for Weebly’s founders and employees that will vest over four years subsequent to closing.
Speaking about the acquisition, Dorsey stated:
“Square and Weebly share a passion for empowering and celebrating entrepreneurs. Square began its journey with in-person solutions while Weebly began its journey online. Since then, we’ve both been building services to bridge these channels, and we can go even further and faster together.”
David Rusenko, CEO of Weebly, also commented:
“Entrepreneurship gives an opportunity to people who were never given one. Weebly has created technology that helps people bring their business idea to life online. Now, we will be expanding that vision to help entrepreneurs succeed beyond their website. I’m excited for Weebly to join Square and help build the future of commerce together.”
Through the acquisition, Weebly, which has millions of customers and more than 625,000 paid subscribers, will expand Square’s customer base globally and add a new recurring revenue stream. Square will then provide Weebly customers with access to the company’s ecosystem of managed payments, hardware, and software, which complement Weebly’s services, which include free website hosting, premium (paid) website design and hosting, online store, and marketing tools. Square then added:
“Square will continue to provide an open platform to offer sellers the flexibility to select and integrate the third-party solutions that are best for their business. Square offers more than 100 partner integrations across a range of third-party apps, including points of sale, accounting software, and other back-office systems.”