Squarespace (NYSE:SQSP) Jumped 13.4% on Acquisition News

Squarespace (NYSE:SQSP), a website and ecommerce tools provider, has been acquired by private equity firm Permira in an all-cash transaction valued at approximately $6.9 billion. Stockholders will receive $44.00 per share in cash, a premium of approximately 29% over Squarespace's 90-day volume weighted average trading price and 15% over its closing share price of $38.19 on May 10, 2024.

With only 8 moves greater than 5% over the last year. The biggest move for Squarespace was 11 months ago when it announced its acquisition of the assets associated with Google Domains, which includes about 10 million domains. This deal represents almost 3% of the worldwide domains, a positive from a competitive standpoint, as there was always worry that Google could use its scale and financial resources to suddenly invest in and dominate the domain market.

Squarespace will provide a smooth transition for customers and keep the same renewal prices for at least a year after the deal. The deal is anticipated to have significant long-term benefits for Squarespace in terms of revenue and free cash flow.

Technical Outlook
Squarespace (NYSE: SQSP ) stock is up 13% as of the time of writing moving within the overbought region with a Relative Strength Index (RSI) of 77.43. A gapping occurred from the $37 Resistant point thrusting through to the $43 mark forming a temporary resistant point. the RSI accentuates a bearish trend is looming ahead therefore, the discrepancy should be employed when trading.