Square has announced that it has entered into an agreement to acquire popular website builder Weebly for $365 million in cash and stock.
Square is best known for its online payments solutions, but has started expanding into other fields. The company acquired food delivery service Caviar in 2014 and corporate catering startup Zesty just recently.
“Square and Weebly will give sellers one cohesive solution to start or grow an omnichannel business. Today, it is important that sellers can reach buyers as they move between channels (in person, online, in apps) during discovery, purchase, and even returns and exchanges,” Square said in a press release.
Weebly is a San Francisco-based company that provides tools to build a professional website or an online store. With its rich suite of website design and marketing tools, anyone can build a website using a drag-and-drop interface. The company primarily catered to individual users but has increasingly focused on serving small enterprises and e-commerce businesses.
With the acquisition, Square hopes to tap into Weebly’s global reach and add a new recurring revenue stream. Nearly 40% of Weebly’s 625,000 paying customers are from outside the United States. On the other hand, Square will give Weebly customers access to its wide range of online payments solutions and financial services.
“Square and Weebly share a passion for empowering and celebrating entrepreneurs,” Square CEO Jack Dorsey said. “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.”
“Entrepreneurship gives an opportunity to people who were never given one,” Weebly CEO David Rusenko said. “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.”
Founded in 2007, Weebly has raised more than $35 million in funding from investors such as Sequoia Capital and Tencent Holdings. Competitor Squarespace (not to be confused with Square), on the other hand, has raised $200 million at a $1.7 billion valuation.