What you need to know
- Squarespace prepares to acquire Google Domains and all of its assets (customer domains) at the purchase price of nearly $180 million.
- The purchase is estimated to include roughly 10 million domains that Google has under its belt.
- Squarespace hopes to provide a seamless transition as it leverages Google's infrastructure.
- The transaction should wrap up by Q3 2023, however, the bulk of its benefits won't finalize until 2024 and beyond.
Google's domain registration days are beginning to head out as everyone engaging with the platform will soon find a new home. According to a Squarespace press release, the company has entered a "definitive agreement" with the Alphabet-owned company to acquire Google Domains and all of its assets. The purchase is said to include an estimated 10 million domains from millions of customers that Google is currently hosting.
A source familiar with the topic informed Bloomberg that the acquisition is priced at around $180 million.
As written in the terms of the agreement, Squarespace states it "will honor all existing Google Domains customers' renewal prices for at least 12 months following the closing of the transaction." The company will also try and incentivize adopting everything Squarespace has to offer customers during this time.
Both sides anticipate the transaction will be done by Q3 2023. However, the "majority" of the benefits as part of the deal aren't expected to be realized until 2024 and beyond.
"In keeping with our efforts to sharpen our focus, we have entered into a definitive agreement with Squarespace for the acquisition of customer accounts of the Google Domains registrar business," says Matt Madrigal, Google's vice president and general manager of merchant shopping.
"Supporting a smooth transition for customers over the coming months, with the help of the Google Domains team, is our top priority. Squarespace can provide an integrated experience of purchasing and managing domains along with offering other tools that these customers may need to build their online presence."
The "smooth transition" Madrigal mentioned in their statement about the acquisition is in regard to Squarespace leveraging Google's infrastructure. Furthermore, Squarespace will become the exclusive domain provider for customers purchasing a domain with their Workspace account directly from Google.
Squarespace states this will remain in effect for three years minimum.
This transaction means that Squarespace will shift gears and absorb all of the billing and support services customers may need with their accounts. Similarly, the company states users will also retain the ability to alter anything on their domain account.
