Squarespace just announced a “definitive asset purchase agreement” with Google, acquiring an estimated 10 million domains hosted on Google Domains as the service winds down following a transition period.
Launched in 2014, Google Domain offered users free domain privacy (also known as Whois privacy), intuitive UI and easy Domain Name System Security Extensions (DNSSEC)) and benefited largely from the company’s massive cloud infrastructure.
Under the agreement, Squarespace will honor the renewal prices of all existing Google Domains customers for at least 12 months and encourage them to adopt the company’s offerings.
The transaction, with a purchase price of $180 million, is expected to close in Q3 of this year.
Once closed, the web development company will become the “exclusive domains provider” for all customers buying domains with a Google Workspace subscription for a minimum of three years.
“While the majority of the benefits of this deal will be realized in 2024 and beyond, Squarespace believes this deal will be meaningfully accretive to its business from both a revenue and free cash flow perspective over time,” the company wrote in a press release.
Squarespace CEO Anthony Casalena expressed excitement over the deal. “We look forward to serving these new customers as we have served millions using our domain products and are committed to ensuring a seamless transition,” he shared.
Meanwhile, Google Merchant Shopping Vice President and General Manager Matt Madrigal said that supporting a smooth transition for customers will be the company’s top priority over the coming months.
“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,” he added.