Deal accelerates Shutterfly’s expansion beyond photo-based personalization
Secures foothold in creator marketplace
REDWOOD CITY, Calif., Jun 14, 2021--(BUSINESS WIRE)--Shutterfly, a leading digital retailer and manufacturing platform for personalized products, today announced an agreement to acquire Spoonflower, a global marketplace connecting makers and consumers with artists worldwide, in an accretive acquisition for approximately $225 million of enterprise value subject to certain working capital and other adjustments. The acquisition will enable Shutterfly to more broadly serve the fast-growing home decor marketplace by adding Spoonflower wallpaper, fabric, linens, bedding and other home decor soft goods to its product assortment and connecting Shutterfly’s 21 million active users to Spoonflower’s artists and design community. The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2021.
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"We are excited to welcome Spoonflower to the Shutterfly family of brands," said Hilary Schneider, Chief Executive Officer of Shutterfly. "Millions of consumers use Spoonflower to make and upload their own designs on premium fabric, wallpaper and home decor, ignite their entrepreneurial spirit by launching small businesses or express their personal style by shopping the marketplace of more than one million designs. Driven by its passionate creative community and a visionary management team, Spoonflower has also experienced explosive growth over the last 18 months amid the thriving DIY consumer movement. It’s a highly complementary strategic fit for Shutterfly and a win/win for consumers, employees, and members of our creative community alike."
Based in Durham, North Carolina and with an international office in Berlin, Germany, Spoonflower is a global marketplace offering custom, print-on-demand fabric, wallpaper and home decor designed by global independent artists. In addition to artists, Spoonflower’s diverse community also includes makers, consumers, interior designers and small business owners. The acquisition follows a year of record revenue growth for Spoonflower, which boasts more than one million designs.
Ms. Schneider added: "The Research Triangle Park (RTP) area - the tech hub encompassing Raleigh, Durham and Chapel Hill, NC - is also home to a talented workforce and an entrepreneurial culture. We are excited to have a growth hub in RTP for further expansion across Shutterfly."
With 3.3 million unique creatives and 4,000 new designs uploaded on average per day, this acquisition also builds upon strong tailwinds for the creative economy, a $2.25 trillion industry. According to Coresight Research, makers are a fast-growing segment driven by the massive increase of creative professionals using online platforms to market and sell unique designs across a variety of products.
"Shutterfly is truly our perfect match," said Michael Jones, Chief Executive Officer of Spoonflower. "Not only will Spoonflower now enable Shutterfly consumers to buy artists' customized design creations in addition to personalizing their own, but we will also unlock the ability to reach new audiences and scale the small businesses of our incredible creative community thanks to Shutterfly’s manufacturing expertise and expansive customer reach. We're simply thrilled to be joining the Shutterfly family."
Spoonflower will retain its distinct brand, culture and team structure. Michael Jones will continue to lead Spoonflower, reporting to Hilary Schneider, CEO of Shutterfly.
Committed to making all of life’s experiences unforgettable, Shutterfly is a leading digital retailer and manufacturing platform for photography and personalized products. Shutterfly operates three divisions: a Consumer division, Lifetouch, and Shutterfly Business Solutions. The Consumer division helps customers create the most from life’s moments through its flagship personalized Shutterfly products; premium offerings in its Tiny Prints boutique; Snapfish custom photo gifts, as well as wedding invitations and stationery; and GrooveBook, an iPhone and Android app and subscription service that prints up to 100 mobile phone photos in a GrooveBook and mails it out every month. Lifetouch is the national leader in school photography, built on the enduring tradition of "Picture Day," and also serves families through portrait studios and other partnerships. Shutterfly Business Solutions delivers enterprise digital printing services that enable efficient and effective customer engagement through personalized communications. For more information, please visit www.shutterflyinc.com.
Spoonflower is a leading eCommerce enabler connecting and empowering artists, makers and consumers in the creative economy. The company’s on-demand digital printing platform has revolutionized the textile industry in its development of an eco-friendly, sustainable and scalable manufacturing process. With Spoonflower, consumers can either design their own patterns on premium fabric, wallpaper and home goods or shop from a leading marketplace of over one million designs and 3.3 million creatives. Today, Spoonflower is the design destination for its loyal global audience that places a premium on personal expression and aspires to convert their entrepreneurial dreams into thriving small businesses. Spoonflower’s lead investors include Guidepost Growth Equity and Bull City Venture Partners. KeyBanc Capital Markets Inc. is acting as exclusive financial advisor to Spoonflower. For more information on Spoonflower visit www.spoonflower.com.
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Shutterfly Director of Corporate Communications