Mobile payment company, Square agrees to buy website builder Weebly for $365 million in cash and stock.
Weebly offers easy-to-use website building tools that can be used by its millions of customers to build websites. The company serves individuals and small businesses as well. Many small and e-commerce companies use the San Francisco based Weebly’s tools to design websites for their businesses.
We’re excited to announce we are joining the @Square family as we work together to create the future of commerce. Here’s a letter from our founder and CEO @drusenko https://t.co/62nkqI3of1 pic.twitter.com/t0hXLuINP8
— Weebly (@weebly) 26 April 2018
Square currently offers loans, software, hardware and instant deposits. The company plans to expand its consumer base by transforming itself as a one-stop-shop for small and medium-sized businesses.
Square says that it aims to create a “one cohesive solution” for entrepreneurs that seek to start online or offline businesses.
“Square and Weebly share a passion for empowering and celebrating entrepreneurs,” said Square CEO Jack Dorsey. “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.”
The acquisition accounts as Square’s biggest deal so far and it will provide Square the access to millions of Weebly customers along with 625,000 paid subscribers. Moreover, all the Weebly customers would be able to access Square’s payment system thereby boosting its global expansion (40 percent of the Weebly paid customers live outside the U.S.).
“There is very little overlap between the paying subscribers on Weebly and Square’s current sellers,” said Square Chief Financial Officer Sahara Friar. “So it’s a chance to up-sell and cross-sell.”
Square will pay for the acquisition in a mix of stock and cash.
Square raised $55.7 million from investors including, Sequoia Capital, Baseline Ventures, Tencent Holdings, Felicics, Ron Conway, Floodgate and Y Combinator.
Shares of Square rose 4.5 percent to $46.74 on Thursday in New York after the deal.