Square will pay with a combination of cash and stock of approximately $365 million, which includes Square restricted stock units for Weebly’s founders and employees that will vest over four years after closing.
“Square and Weebly share a passion for empowering and celebrating entrepreneurs,” said Jack Dorsey, CEO of Square. “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.”
Square and Weebly will provide sellers with an integrated suite of services that will enable them to carry out tasks such as engaging with customers, managing orders, growing sales and making informed business decisions.
“Omnichannel commerce is our top focus area in 2018,” said Alyssa Henry, seller lead at Square. “From managing orders, appointments and payments to building a website, running a business is complex, and entrepreneurs around the world want powerful and intuitive tools. Whether they’re an artist, a winemaker or a hairdresser, with Square and Weebly, sellers will have one cohesive solution to build their business.”
The acquisition will expand Square’s customer base globally and add a new recurring revenue stream. Weebly has millions of customers and more than 625,000 paid subscribers. Nearly 40 percent of Weebly’s paid subscribers are outside the U.S., which will help accelerate Square’s global expansion.
“Entrepreneurship gives an opportunity to people who were never given one,” said David Rusenko, CEO of Weebly. “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.”
The completion of this transaction is subject to customary closing conditions, including regulatory approvals. The deal is expected to be completed during the second quarter of 2018.