Square announced plans last week to acquire Weebly, a technology company that enables businesses to build web sites and online stores.
Rick Oglesby, president of AZ Payments Group, described the acquisition as one that provides the company with not only expanded capabilities, but also an established user base.
“Prior to this, Square’s footprint has been almost entirely in the card-present arena, and its online capabilities have been more focused on helping its card-present merchants expand into new channels. Weebly gives Square a robust flow of card-not-present merchants and it also gives Square lots of e-commerce talent and technology assets,” Oglesby told PaymentFacilitator.
“It’s also a good vehicle for international expansion,” he said.
According to Square’s announcement, 40% of Weebly’s customers are outside the U.S. The company has “millions” of customers and more than 625,000 subscribers, it said.
“Square checked a lot of boxes with a single acquisition. This one will turn out well,” Oglesby said.
Square touted the acquisition as an effective way to serve its customers in all aspects of their businesses, both on- and offline. Together, the two companies offer payments, hardware, software, web hosting, and ecommerce and marketing tools.
“Square and Weebly share a passion for empowering and celebrating entrepreneurs,” Jack Dorsey, CEO of Square, said in the press release. “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.”
Alyssa Henry, seller lead at Square described omnichannel commerce as the company’s “top focus area in 2018.”
“From managing orders, appointments, and payments to building a website, 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,” she said in the release.
Weebly is Square’s second acquisition in only a month and third so far this year. But CFO Sarah Friar cautioned observers against reading too much into that pace according to TechCrunch, which quoted her as saying the company plans to continue its focus on “a build path and a partner path.”
Square is paying about $365 million for the company. The transaction is expected to close during the second quarter of this year.