Squarespace’s Sale Draws Hedge Fund Lawsuit: Delaware Brief

Squarespace Sale Draws Hedge Fund Suit

Photographer: Bing Guan/Bloomberg

Squarespace CEO Anthony Casalena teamed up with three investment firms to drive down the price of the company’s $7.2 billion sale to their consortium, according to an unsealed lawsuit, Mike Leonard reports.

A hedge fund is suing the tech founder, Accel, and General Atlantic, saying their position on both sides of the deal — cashing out part of their dominant stake, forcing out minority shareholders, and bringing on Permira Advisers as a major co-investor — gave them “a powerful economic incentive to minimize the transaction price.”

Although Casalena negotiated the buyout personally, he later ...