Small business payments company has announced the acquisition of startup , a drag-and-drop website builder with a focus on ecommerce, for $365 million in cash and stock, .
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Founded in 2007, Weebly raised , with , , and being among the most prominent . And while the exit has likely left investors more than whole, the final acquisition price falls well short of Weebly’s 2015 valuation of $490 million, . While a website building company may seem out of Square’s wheelhouse, Weebly’s increased focus on making ecommerce simple for small business owners likely played a key role in justifying the deal.
Square already offers a ; however, it’s likely that Weebly’s 625,000 paying customers, 60 percent of which are global according to Square’s , proved to be an attractive shortcut to further owning the digital and physical presence of small business owners. Square’s CEO, , lends credence to this by stating in a press release that the acquisition would serve as a “bridge” between Square’s “in-person solutions” and Weebly’s “journey online.” (For those of you who are not in marketing, this bridge is also known by the buzzword “.”)
Of course, Weebly isn’t the only website builder. On the public front, both and offer similar solutions. Both companies closed up from prior day’s trading by 2.14 percent and 3.43 percent, respectively Private website creation startups include , which has raised a total of $278.5 million and was last valued at $1.7 billion, and , which has raised a total of $27.8 million.
So while the Weebly acquisition gives Square a leg up on being the physical and digital hub for small business owners, there’s still a lot of room for more customers to be won over.
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