Google Domains for $180 million — Squarespace buys

Google sells its domain registration business.

In a surprising notice today, website building platform Squarespace (NYSE: SQSP) disclosed that it’s buying Google Domains, Google’s domain name registrar. The purchase price is $180 million, and JPMorgan Chase Bank is providing financing for part of the purchase.

Read my analysis of this deal, counting its impact on Squarespace, GoDaddy, and other registrars.

Google launched its domain registrar in 2014, originally calling it an experiment. It has since ballooned into one of the largest domain registrars, with approximately 10 million domains under management. Over half of those domains are .com. Google is the fifth largest domain name registrar for .com domains.

The firm’s decision to divest this business comes as a surprise. It stated the decision is “In keeping with our efforts to sharpen our focus.”

Google Domains is a big prize for Squarespace given its client base. The firm has focused on selling domains to end users, and Squarespace hopes to convert some of these people into clients of its site building and other tools.

Squarespace will honor Google Domains renewal prices for current clients for at least 12 months. Clients will remain on Google’s registrar platform during a transition period. Squarespace will also become the exclusive domain name provider for any client purchasing a domain along with their Workspace subscription from Google directly for a minimum of three years.

SquareSpace is also a registrar. On a conference call today, CEO Anthony Casalena noted that the firm has millions of domains under management. As stated by ICANN notes, regarding 850,000 are .com domains. Some of its domains are sold through resellers.

The deal is expected to close in Q3.