Google has entered into an asset purchase agreement with Squarespace. The deal will result in Google transferring the assets of its domain business, Google Domains, to Squarespace. The agreement includes approximately ten million domains currently hosted on Google Domains.
The deal, anticipated to close in the third quarter of 2023, will make Squarespace the exclusive provider of domains for any customer who buys a domain along with a Google Workspace subscription for a minimum of three years.
Squarespace will also take over billing and support services for Google Workspace customers who registered through Google Domains.
From Squarespace’s perspective, the acquisition is a significant step towards expanding their customer base and solidifying their position in the domain management sector. As part of the agreement, Squarespace has committed to maintain the current renewal prices for Google Domains customers for at least 12 months after the transaction is complete.
During the transition, Squarespace plans to use Google’s infrastructure, currently powering Google Domains, to ensure a smooth domain transfer process.
The transaction, subject to regulatory approvals and closing conditions, is projected to bring benefits mostly in 2024 and beyond. Squarespace expects the deal to positively contribute to its revenue and free cash flow over time.
[Image courtesy: Google]