Google has recently discontinued a number of its products and services, and the company is once again in the news for leaving the domain name registration industry. Squarespace has announced that it has reached an agreement with Google to acquire Google Domains-related assets.
“We are pleased to announce that Squarespace has entered into a definitive asset purchase agreement with Google, pursuant to which Squarespace will acquire the assets associated with the Google Domains business, which will be winding down after a transition period. This acquisition comprises approximately 10 million domains hosted on Google Domains belonging to millions of consumers, according to a blog post by Squarespace.
In accordance with the provisions of the agreement, Squarespace will honor the renewal pricing of existing customers for at least 12 months following the closing of the transaction. In addition, the company will offer additional incentives to Google Domains customers to encourage them to create a website with Squarespace and utilize its other offerings.
Squarespace will utilize Google Domains infrastructure for the transmission of domains.
“Under the terms of the agreement, Squarespace will honor all existing Google Domains customers’ renewal prices for at least 12 months following the closing of the transaction, as well as provide additional incentives to encourage Google Domains customers to build a website with Squarespace and adopt other Squarespace offerings,” Squarespace stated.
After the agreement is finalized, Squarespace will become the exclusive domain provider for Google Workspace subscribers who wish to purchase a domain directly from Google for a minimum of three years. Squarespace has announced that it will provide invoicing and support services to Google Workspace consumers who already have domains from Google Domains.
The company did not specify what will occur when the subscription begins to renew, but it did state that “customers will continue to have the option to make changes to their domains accounts at any time.”
The transaction is anticipated to close in the third quarter, pending “certain regulatory approvals and customary closing conditions.” The majority of the benefits of the transaction will be realized in 2024, according to the company, but it believes this transaction will increase revenue and cash flow over time.
While the majority of this deal’s benefits won’t be realized until 2024 and beyond, Squarespace believes this acquisition will be significantly accretive to its business’s revenue and free cash flow over time.