Shutterstock to buy digital marketplace Envato for $375m
Make us a preferred source
Make us a preferred source on Google
The news: Stock photography provider Shutterstock has agreed to acquire Australia-based digital marketplace Envato in an all-cash deal.
The numbers: Shutterstock will pay USD245 million ($373 million) for 100% stake in Envato. The deal will add 650,000 subscribers, more than doubling Shutterstock's subscriber base to 1.15 million.
It will also bolster Shutterstock's content library with 10 million images, 6 million videos, and 1 million audio clips.
The deal is expected to add 20% to annual revenues and 15% to annual adjusted earnings. The transaction is expected to close in the third quarter.
The context: Envato, founded in 2006, enables millions of people around the world to buy and sell creative assets, use smart design templates and learn creative skills. Its flagship product, Elements, is a creative subscription providing unlimited downloads of a diverse array of assets and templates.
Shutterstock said the deal would help expand reach within faster growing audiences such as freelancers, hobbyists, small businesses and agencies. It would also further diversify Shutterstock into new content types including code and web themes, product mock-ups, fonts and templates.
What they said: "Envato is perfectly positioned to serve a growing customer need for an unlimited multi-asset subscription to a library of creative content, with an emphasis on videos, audio, graphics, fonts and templates," Shutterstock CEO Paul Hennessy said.
"By extending our reach to faster growing audiences and into additional content types, this acquisition will help Shutterstock fulfil its mission of connecting customers to the content they need."
The source: Shutterstock
