Square has just announced that it's acquiring website building company Weebly for $365 million in cash and stock. The deal marks Square's second acquisition in a week's time following its purchase of the catering platform Zesty.
Based in Square's hometown of San Francisco, Weebly offers free website hosting, premium website design and hosting, online store, and marketing tools.
Its user base -- primarily small business owners and entrepreneurs -- includes more than 625,000 paid subscribers, 40 percent of which are outside the US. This set up, Square noted, will bring a new recurring revenue stream into its business and help accelerate its global expansion.
"Square and Weebly share a passion for empowering and celebrating entrepreneurs," said Square CEO Jack Dorsey. "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."
At this point, Square has officially graduated from a mobile payments company to a full-fledged small business service provider. Square has greatly diversified its portfolio over the years, expanding into corporate catering and lending, and building tools for email marketing and customer management.
By combining the two food delivery services, Square has created Caviar Fastbite, an upscale food delivery service that promises to bring curated dishes to hungry San Franciscans in as little as 10 minutes.
Transaction-based revenue was $525 million, up 30 percent year over year. Square also noted that it had more than seven million monthly active Cash App customers as of December 2017.
Square emphasized that Caviar's approach is a more affordable alternative to in-house delivery schemes that drives additional revenue.