Mobile payments company Square announced on Thursday, April 25, that it’s buying website builder Weebly for $365 million in a mix of cash and stock.
Square, which is led by Twitter CEO Jack Dorsey, will use the acquisition to expand the company’s services beyond its current offerings, giving small businesses the tools to create websites and online stores to build and promote their services. Weebly, with millions of customers around the world — more than 625,000 of them subscribers — looks set to boost Square’s customer base, especially overseas.
Among its services, Square offers merchants a credit card reader that enables a smartphone or tablet to act as a payment terminal, providing a cost-effective way for small-business owners to process credit card transactions. The system is popular with many brick-and-mortar merchants, and Square will now aim to show its users online opportunities for business expansion with support from Weebly.
Weebly customers, meanwhile, will be encouraged to access Square’s ecosystem of managed payments, hardware, and software, which complement its own services, among them free website hosting, premium website design and hosting, online store setup, and a range of marketing tools.
In a blog post, Weebly reassured its customers that nothing will change regarding their Weebly experience, with the company promising to continue with work on new features. It also stated that its customer service setup will remain unchanged, saying, “We’re just a phone call, chat, or email away.”
Square’s Alyssa Henry said in a release that “running a business is complex, and entrepreneurs around the world want powerful and intuitive tools. Whether they’re an artist, a winemaker, or a hairdresser, with Square and Weebly sellers will have one cohesive solution to build their business.”
Weebly CEO David Rusenko noted how Weebly has created technology “that helps people bring their business idea to life online,” adding that it’s now in a position to expand its vision “to help entrepreneurs succeed beyond their website.”
Dorsey, for his part, said Square and Weebly “share a passion for empowering and celebrating entrepreneurs,” adding, “Square began its journey with in-person solutions while Weebly began its journey online. Since then, we’ve both been building services to bridge these channels, and we can go even further and faster together.”
The deal is expected to be completed by the end of June following regulatory approvals.
Editors' Recommendations
- Look out Venmo! Big banks are coming for you with mobile payment service Zelle
- Xiaomi takes on Apple Pay, others with the new Mi Pay mobile payment service
- Apple Pay reportedly coming to mobile websites later this year
- Square now accepts Apple Pay and Android Pay in 100 local businesses and counting
- Microsoft plans to launch payments service on Windows 10 soon
