Shutterstock (NYSE: SSTK), a NYC-based provider of a platform offering content for brands, digital media and marketing companies, acquired Envato Pty Ltd., a Melbourne, Australia-based company which specializes in digital creative assets and templates, for $245m.
With the acquisition, which is expected to close in the third quarter, subject to customary closing conditions, Shutterstock will expand its offerings. The deal is expected to accelerate path to Shutterstock’s 2027 long-term targets with Envato adding 20% to annual revenues and 15% to annual adjusted EBITDA. It will enable Shutterstock to complement its existing offering with Envato Elements, expand its reach within audiences such as freelancers, hobbyists, small businesses and agencies, add 650k subscribers, increase its content revenue from video, audio, graphics, fonts and templates, bolster its content library with 10 million images, 6 million videos, 1 million audio clips, 0.5 million templates and 0.2 million graphics & fonts, and further diversify its into new content types including code & web themes, product mock-ups, fonts and templates (e.g. Slides, Powerpoint, Keynote, WordPress, video, designs for social posts, gaming, podcasts and print-on-demand).
Led by CEO Hichame Assi, Envato enables millions of people around the world to buy and sell creative assets, use smart design templates and learn creative skills. Through its combination of an extensive range of asset types, a deep library, and quality artistry, it helps creatives get projects done effectively.
The company has a presence in Mexico and New Zealand.
Led by CEO Paul Hennessy, Shutterstock provides a platform offering creative content for brands, digital media and marketing companies. The company licenses a diverse collection of high-quality 3D models, video, music, photography, vectors and illustrations. Its flagship product, Elements, is a creative subscription providing unlimited downloads of a diverse array of assets, templates and more.
Commenting on the news, Paul Hennessy 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. By extending our reach to faster growing audiences and into additional content types, this acquisition will help Shutterstock fulfill its mission of connecting customers to the content they need, wherever they are so they can create, build and share their next big idea.”
FinSMEs
06/05/2024