Payment processor Square announced last week that they are acquiring website builder Weebly for $365 million dollars.
Weebly is a site building service and is used by individuals and small businesses to create professional-looking websites and online stores easily. The service is similar to Squarespace or WordPress, which offer similar features.
The deal includes cash and stock. The deal helps Square reach an international audience since 40% of Weebly customers are out of the US. It also gives Square a big boost into the e-commerce market.
Square’s intent behind the purchase is to merge Square’s hardware and software for payments with Weebly’s website hosting, design, and online stores to offer a single solution for starting and running businesses across physical and digital storefronts.
A small business can now use Weebly as a one-stop shop for setting up an e-commerce site, using the Weebly site builder, Square payment processing to collect revenue and use Square capital for ongoing financial needs.
Square will also assist in building Weebly’s customer base, which currently boasts 625,000 paying customers and gives Square an additional revenue stream.
Square CEO Jack Dorsey said in the press release announcing the acquisition, “Square and Weebly share a passion for empowering and celebrating entrepreneurs.”