Square, the payment software and hardware maker has announced that it agreed to purchase Weebly for $365 million in a cash and stock deal.
While software and hardware for payments is what Square is best known for, it has also expanded into new areas such as food delivery after acquiring Caviar and corporate catering with is acquisition of Zesty.
Weebly has easy to use tools for website building. While its tools are usable by individuals, the company has focused more of late on serving e-commerce sites and small businesses.
At the same time, Squarespace a competitor raised more than $200 million at a valuation of $1.7 billion at the end of 2017.
Square released a statement that said that through the acquisition of Weebly it is able now to create a single cohesive solution for an entrepreneur looking to build an offline or online business.
In addition, 625,000 of Weebly’s paid subscribers are located outside the United States helping Square to expand its footprint globally.
Square as well as Weebly share the passion of celebrating and empowering entrepreneurs said Jack Dorsey the CEO at Square in a release that announced the acquisition.
David Rusenko, Dan Veltr and Chris Fanini founded Weebly in 2007. Rusenko remains the CEO of the company.
According to an online tech company, Weebly raised over $35 million from investors such as Tencent Holdings, Sequoia Capital, Baseline Ventures, Felicis, Floodgate, Y Combinator and Ron Conway.
Square said that the price for the acquisition includes stock for the founders as well as employees of Weebly that will vest during a period of four-years.
Square executives, during their conference call were asked if the company has become more acquisitive. Sarah Friar the CFO said it was more serendipity than anything else as Square and Weebly have worked together for several years she said.
Friar also cautioned against reading into the acquisition as something where Square has made the decision to purchase several companies. She added that in general the company was sticking to its build and partner path.
The majority of the workers with Weebly will join Square. Rusenko said the he just completed a meeting with everyone at Weebly where the acquisition was announced.
He said everyone was excited and holds a true mutual and shared respect.