Sec Form 13D Filing - Casalena Anthony filing for SQUARESPACE INC (SQSP) - 2024-09-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

Squarespace, Inc.

(Name of Issuer)

Class A common stock, par value $0.0001 per share

(Title of Class of Securities)

85225A107

(CUSIP Number)

Anthony Casalena

c/o Squarespace, Inc.

225 Varick Street, 12th Floor

New York, NY 10014

(646) 580-3456

with a copy to

Todd Cleary

Megan Baier

Catherine Riley Tzipori

Wilson Sonsini Goodrich & Rosati, P.C.

1301 Avenue of the Americas, 40th Floor

New York, New York 10019

(212) 999-5800

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

September 9, 2024

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☐

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Item 1. Security and Issuer.

This Amendment No. 1 (“Amendment No. 1”) to Schedule 13D (the “Statement”) amends the Statement originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 20, 2024 with respect to the Class A common stock, par value $0.0001 per share (the “Class A common stock”) and the Class B common stock, par value $0.0001 per share (the “Class B common stock”) of Squarespace, Inc., a Delaware corporation (the “Company”), whose principal executive offices are located at 225 Varick Street, 12th Floor, New York, New York 10014. Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Statement. Except as set forth below, all previous Items and disclosures set forth in the Statement remain unchanged.

Item 4. Purpose of Transaction.

Item 4 is hereby amended and restated as follows:

The information set forth in Item 1, Item 5 and Item 6 of this Schedule 13D is hereby incorporated by reference into this Item 4.

The Reporting Persons acquired the securities described in this Schedule 13D for investment purposes or as consideration for services provided to the Issuer. The Reporting Persons intend to monitor and evaluate their investment on an ongoing basis and expect regularly to review and consider ways of maximizing their return on such investment. Subject to the terms of the Casalena Tender and Support Agreement (as defined below), any actions the Reporting Persons might undertake may be made at any time and from time to time without prior notice and will be dependent upon the Reporting Persons’ review of numerous factors, including, without limitation, the Issuer’s financial position and strategic direction; price levels of the common stock of the Issuer; conditions in the securities markets; various laws and regulations applicable to the Issuer and companies in its industry and the Reporting Persons’ ownership in the Issuer; and general economic and industry conditions. The Reporting Persons may in the future take actions with respect to their investment in the Issuer as they deem appropriate, including, without limitation, changing their current intentions with respect to any or all matters required to be disclosed in this Schedule 13D. In addition, Mr. Casalena, in his capacity as Chief Executive Officer and a member of the Board, has engaged and will continue to engage in discussions with management, the Board, stockholders and/or other relevant parties regarding the business, operations, strategy, plans and prospects of the Issuer.

The Transactions (as defined below) may result in one or more of the transactions, events or actions specified in clauses (a) through (j) of Item 4 of Schedule 13D, including, without limitation, an acquisition of additional securities of the Issuer and other material changes in the Issuer’s business or corporate structure.

Except as set forth herein and pursuant to, and in compliance with, a written plan that meets the requirements of Rule 10b5-1 under the Exchange Act and is in existence as of the date hereof, the Reporting Persons do not currently have any plans or proposals that relate to, or that would result in, any of the matters listed in clauses (a) through (j) of Schedule 13D, although, depending on the factors discussed herein, the Reporting Persons may change their purpose or formulate different plans or proposals with respect thereto at any time.

Item 5. Interest in Securities of the Issuer.

Item 5(a) is hereby amended and restated as follows:

(a) The percentages used herein are calculated based upon an aggregate of 133,517,059 shares of Class A common stock outstanding, consisting of (i) 90,630,649 shares of Class A common stock reported by the Company to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, and (ii) 42,886,410 shares of Class A common stock issuable upon conversion of the Class B common stock held by Mr. Casalena.

As of September 9, 2024, Anthony Casalena’s, a Reporting Person, beneficial ownership consists of: (i) 387,500 shares of Class A Common Stock and 2,050,838 shares of Class B common stock held directly by the Anthony Casalena 2019 Family Trust, for which the Reporting Person is the trustee, and (ii) 1,494,445 shares of Class A Common Stock and 40,835,572 shares of Class B Common Stock held directly by the Anthony Casalena Revocable Trust, for which the Reporting Person is the trustee. Each share of Class B Common Stock is convertible at the option of the holder into one share of Class A Common Stock. The Reporting Person may be deemed to have voting power and dispositive power over the securities held by the Anthony Casalena 2019 Family Trust and the Anthony Casalena Revocable Trust. Based on an aggregate of (i) 90,630,649 shares of Class A common stock stated to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, and (ii) 42,886,410 shares of Class A common stock issuable upon conversion of the Class B common stock held by Mr. Casalena, Mr. Casalena beneficially owns approximately 33.5% of the outstanding shares of common stock of the Company, as calculated in accordance with Rule 13d-3(d)(1)(i).

As of September 9, 2024, the Casalena Foundation’s, a Reporting Person, beneficial ownership consists of 4,208,674 shares of Class A common stock held directly by the Reporting Person. Based on an aggregate of 90,630,649 shares of Class A common stock stated to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, the Casalena Foundation beneficially owns approximately 4.6% of the outstanding shares of common stock of the Company, as calculated in accordance with Rule 13d-3(d)(1)(i).

Pursuant to Section 13(d) of the Exchange Act, by virtue of the relationships described in Item 6 and the obligations and rights thereunder, the Reporting Persons may be deemed to be members of a “group” with Accel Leaders 3 L.P. (together with certain of its affiliated funds, “Accel”), GA SQRS II ( “GA”) and/or certain of their affiliates. However, each Reporting Person expressly disclaims beneficial ownership of the shares of Class A common stock beneficially owned by Accel, GA or any other reporting person(s). Neither the filing of this Statement nor any of its contents shall be deemed to constitute an admission that any of the Reporting Persons beneficially owns any shares of Class A common stock that are beneficially owned by Accel, GA or any other reporting person(s). The Reporting Persons are only responsible for the information contained in this Statement and assume no responsibility for information contained in any other Schedule 13D filed by Accel, GA or any other reporting person(s).

Based on the Schedule 13D filed by Accel with the SEC on September 11, 2024, Accel beneficially owns 14,514,196 shares of Class A common stock of the Company. Based on an aggregate of 90,630,649 shares of Class A common stock stated to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, Accel beneficially owns approximately 16.0% of the outstanding shares of Class A common stock of the Company, as calculated in accordance with Rule 13d-3(d)(1)(i).

Based on the Schedule 13D filed by GA with the SEC on September 11, 2024, GA beneficially owns 15,594,808 shares of Class A common stock of the Company. Based on an aggregate of (i) 90,630,649 shares of Class A common stock stated to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, and (ii) 4,958,345 shares of Class A common stock issuable upon conversion of the Class B common stock held by GA, GA beneficially owns approximately 16.3% of the outstanding shares of common stock of the Company, as calculated in accordance with Rule 13d-3(d)(1)(i).

Accordingly, in the aggregate, the Reporting Persons, Accel, GA and/or certain of their affiliates may be deemed to beneficially own 79,086,033 shares of Class A common stock, which, as calculated in accordance with Rule 13d-3(d)(1)(i), represents approximately 57.1% of the total shares of common stock of the Company based on (i) 90,630,649 shares of Class A common stock stated to be outstanding as of June 30, 2024 as reflected in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2024, and (ii) 47,844,755 shares of Class A common stock issuable upon conversion of the Class B common stock held by Mr. Casalena and GA.

(c)

Item 5(c) is hereby amended and restated as follows:

Except as set forth herein and pursuant to, and in compliance with, a written plan that meets the requirements of Rule 10b5-1 under the Exchange Act in existence as of the date hereof, none of the Reporting Persons has effected any transaction in shares of Class A common stock in the past 60 days.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to the Issuer.

Item 6 is hereby amended and restated as follows:

The information disclosed under Item 4 above is hereby incorporated by reference into this Item 6.

Please see Item 5(a), which is hereby incorporated by reference.

The Reporting Persons entered into a Joint Filing Agreement on May 20, 2024 (the “Joint Filing Agreement”), pursuant to which they have agreed to file this Statement jointly in accordance with the provisions of Rule 13d-1(k)(1) under the Exchange Act. A copy of the Joint Filing Agreement is attached hereto as Exhibit 1.

Pursuant to a Registration Rights Agreement (the “Registration Rights Agreement”), dated May 10, 2021, by and among the Company, the Casalena Parties and the other stockholders of the Company named therein, the Reporting Persons are entitled to certain customary demand registration and piggyback registration rights, subject to the terms and conditions of the Registration Rights Agreement. The foregoing description of the Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the Registration Rights Agreement, which is attached hereto as Exhibit 2.

On September 9, 2024, the Company entered into an Amended and Restated Agreement and Plan of Merger (the “Amended and Restated Merger Agreement”) with Spaceship Purchaser, Inc. and Spaceship Group MergerCo Inc. The Amended and Restated Merger Agreement provides that, subject to the terms and conditions set forth in the Amended and Restated Merger Agreement, Merger Sub will merge with and into the Issuer (the “Merger”), with the Issuer surviving the Merger. If the Merger is consummated, the Class A Common Stock will cease to be registered under Section 12 of the Act. In connection with the Company’s execution of the Amended and Restated Merger Agreement, Mr. Casalena, the Casalena Foundation and certain related parties (the “Casalena Parties”) have entered into a tender and support agreement (the “Casalena Tender and Support Agreement”) with the Company and Spaceship Purchaser, Inc., a Delaware corporation (“Parent”), pursuant to which the Casalena Parties agreed, among other things, (i) to vote all shares beneficially owned by them against any action, agreement or proposal which would reasonably be expected to prevent, materially impair or materially delay the consummation of the tender offer contemplated by the Amended and Restated Merger Agreement (the “Tender Offer”), the Merger (together with the Tender Offer, the “Transactions”) or any of the other transactions contemplated by the Amended and Restated Merger Agreement and (ii) to terminate the support agreement that the Casalena Parties previously entered into with the Company and Parent on May 13, 2024, as amended, in connection with the prior definitive agreement and plan of merger. The Casalena Tender and Support Agreement also includes certain restrictions on transfer of shares of Class A common stock and Class B common stock held by the Casalena Parties. In addition, the Casalena Parties agreed to contribute to a direct or indirect parent company of Parent a portion of its holdings of Company common stock in exchange for equity interests in such direct or indirect parent company of Parent that would result in the Casalena Parties indirectly owning approximately 33.3% of the Company following the consummation of the Transactions (the “Casalena Rollover”). The Casalena Rollover is conditioned, among other things, on the substantially contemporaneous funding of Accel Leaders 3 L.P. and certain of its affiliated funds (collectively, the “Accel Parties”) of its obligations under its equity commitment letter with Parent and contribution of certain shares of Class A common stock and/or Class B common stock held by the Accel Parties and GA, as applicable, to a direct or indirect parent company of Parent, in each case in exchange for equity interests in such direct or indirect parent company of Parent that would result in the Accel Parties and GA indirectly owning approximately 9.0% and 8.4%, of the Company, respectively, following the consummation of the Transactions, pursuant to and in accordance with the terms and conditions of the equity commitment letter or tender and support agreements, as applicable, signed by the Accel Parties and GA. In addition, the consent of the Casalena Parties is required for (i) any amendments to the respective tender and support agreements signed by the Accel Parties and GA (ii) entry by the Company and Parent into any side agreements with any other parties, and (iii) certain material adverse amendments to the Tender Offer or the Amended and Restated Merger Agreement. The consent of both the Accel Parties and GA is required for any amendments to the Casalena Tender and Support Agreement, and each has rights equivalent to clauses (ii) and (iii) of the previous sentence. The information in this paragraph is qualified in its entirety by reference to the Casalena Tender and Support Agreement, a copy of which is filed as Exhibit 3, and which is incorporated herein by reference.

Except as described above or elsewhere in this Statement or incorporated by reference in this Statement, there are no contracts, arrangements, understandings or relationships (legal or otherwise) between the Reporting Persons and any other person with respect to any securities of the Company, including, but not limited to, transfer or voting of any securities, finder’s fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or losses, or the giving or withholding of proxies.

Item 7. Materials to be Filed as Exhibits.

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated as of September 11, 2024

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