Sept 9 (Reuters) - Permira has agreed to increase its

offer price to take website-design software company Squarespace ( SQSP )

private, now valuing the deal at $7.2 billion, the

companies said on Monday.

The private equity firm will offer $46.50 per share in cash

to Squarespace ( SQSP ) stockholders, compared with its earlier proposal

of $44 apiece.

The revised bid comes days after proxy advisory firm

Institutional Shareholder Services recommended Squarespace ( SQSP )

investors to vote against Permira's proposed transaction.

ISS had raised concerns that the sale process did not

maximize value for shareholders, given Squarespace's ( SQSP ) strong

operational results and outlook.

Permira's new offer underscores its keen interest in

Squarespace ( SQSP ), which helps enterprises digitize their operations

and enhance branding as more companies move online to drive

growth.

Squarespace ( SQSP ) was valued at $6.5 billion in its market debut

in May 2021.

The revised offer represents a premium of 36.4% to the

stock's closing price on May 10, the last trading day prior to

the announcement of the original deal.

Permira's latest bid is higher than Squarespace's ( SQSP ) closing

price on Friday, which was already above the original offer.

Shares of Squarespace ( SQSP ) were up 2% at $46.23 in premarket

trading.

The transaction has been approved and recommended by a

special committee of Squarespace's ( SQSP ) board of directors and is

structured as a tender offer.

Squarespace ( SQSP ) said in May upon going private, it would have

the flexibility and resources to invest in enabling

entrepreneurs to build better online brands and more easily

transact with their customers.