NEW YORK,
May 2,
2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK),
a leading global creative platform offering high-quality creative
content for transformative brands, digital media and marketing
companies, today announced that it entered into a definitive
agreement to acquire Envato Pty Ltd. ("Envato"), a leader in
digital creative assets and templates. Envato's flagship product,
Elements, is a creative subscription providing unlimited downloads
of a diverse array of assets, templates and more—an intelligent
creative companion helping creatives make their mark globally.
Founded in 2006 and headquartered in Australia with a presence in Mexico and New
Zealand, 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
breadth of asset types, a deep library, a compelling value
proposition and quality artistry, Envato helps creatives get
projects done faster and more effectively.
"We're thrilled about this transaction and looking forward to
welcoming the Envato team to Shutterstock," said Shutterstock CEO
Paul Hennessy. "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."
"Since its humble beginnings in a Sydney garage, Envato has generated more than
$1.3 billion in earnings for its
author community and scaled to 650k
subscribers. I feel an immense sense of pride in the team for
achieving this global scale as an independent business," added
Envato CEO Hichame Assi. "As we enter this next chapter, we remain
laser focused on empowering the creative community to thrive and
excited to achieve this shared goal with Shutterstock."
Former CEO and co-founder Collis
Ta'eed expressed his gratitude to the community stating that
he is "profoundly grateful to all those who played a part, big or
small, in our collective story." Ta'eed added, "I'll be cheering
from the sidelines, confident there is a shared dedication to
innovation and creativity, as well as a continued commitment to our
values."
Strategic Highlights:
- Complements Shutterstock's existing offering with Envato
Elements, a leading unlimited multi-asset subscription
offering
- Expands Shutterstock's reach within faster growing audiences
such as freelancers, hobbyists, small businesses and agencies
- Adds 650k subscribers, more than
doubling Shutterstock's subscriber base to 1.15 million
- Increases Shutterstock's Content revenue from video, audio,
graphics, fonts and templates
- Bolsters Shutterstock's content library with 10 million images,
6 million videos, 1 million audio clips, 0.5 million templates and
0.2 million graphics & fonts
- Further diversifies Shutterstock 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)
Transaction Highlights:
- $245 million cash purchase of
100% of Envato Pty Ltd at closing, after customary working capital
and other adjustments
- Expected to accelerate path to Shutterstock's 2027 long-term
targets with Envato adding 20% to annual revenues and 15% to annual
adjusted EBITDA
- Financing via a $375 million
credit facility with expected drawn leverage of 0.7x net debt to
2024 combined adjusted EBITDA
- Expected transaction closing in the third quarter, subject to
customary closing conditions
Additional Information:
Investors can find a link to the presentation material on the
Envato acquisition at: https://investor.shutterstock.com.
Financing Sources and Advisors:
Financing for the transaction will be provided by Bank of
America, Citigroup, Wells Fargo, and Citizens. CapM Advisors and
White & Case LLP acted as financial advisor and legal advisor,
respectively, to Shutterstock. Drake Star Partners and Goodwin
Procter LLP and King & Wood Mallesons acted as financial
advisor and legal advisors, respectively, to Envato.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK) is a leading global creative
platform offering high-quality creative content for transformative
brands, digital media and marketing companies. Fueled by millions
of creators around the world, a growing data engine and a
dedication to product innovation, Shutterstock is the leading
global platform for licensing from the most extensive and diverse
collection of high-quality 3D models, videos, music, photographs,
vectors and illustrations. From the world's largest content
marketplace, to breaking news and A-list entertainment editorial
access, to all-in-one content editing platform and studio
production services—all using the latest in innovative
technology—Shutterstock offers the most comprehensive selection of
resources to bring storytelling to life.
Learn more at www.shutterstock.com and follow us on LinkedIn,
Instagram, X, Facebook and YouTube.
ABOUT ENVATO
Envato is a global leader in digital creative assets, tools and
templates. Serving customers worldwide, Envato is shaping the
creative process with products such as Envato Elements–the
essential creative subscription–and Placeit, a premier platform for
mockups and templates. With over 16 million high-quality assets
made by passionate and talented global contributors, Envato is
dedicated to fueling creative projects with ready-to-use design and
video templates, stock videos, graphics, photos, music tracks and
sound effects and more. Envato is elevating the future of sourcing
creative assets–making the experience more intelligent and usable
and empowering creatives to get projects done faster and more
effectively.
Learn more at www.envato.com and follow us on LinkedIn,
Instagram, X, Facebook and Tuts+ YouTube.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact are
forward-looking. Examples of forward-looking statements include,
but are not limited to, statements regarding guidance, industry
prospects, future business, future results of operations or
financial condition, new or planned features, products or services,
management strategies and our competitive position. You can
identify forward-looking statements by words such as "may," "will,"
"would," "should," "could," "expect," "aim," "anticipate,"
"believe," "estimate," "intend," "plan," "predict," "project,"
"seek," "potential," "opportunities" and other similar expressions
and the negatives of such expressions. However, not all
forward-looking statements contain these words. Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that could cause our actual results to differ
materially from those expressed or implied by the forward-looking
statements contained herein. Such risks and uncertainties include,
among others, those discussed under the caption "Risk Factors" in
our most recent Annual Report on Form 10-K, as well as in other
documents that the Company may file from time to time with the
Securities and Exchange Commission. Factors related to the
transactions discussed in this document that could cause actual
results to differ materially from those contemplated by the
forward-looking statements include: uncertainties as to the timing
to consummate the potential transaction; the risk that a condition
to closing the potential transaction may not be satisfied;
potential litigation relating to the potential transaction that
could be instituted; the effects of disruption to our or the
target's respective businesses; the impact of transaction costs;
our ability to achieve the benefits from the proposed transaction;
our ability to effectively integrate the acquired operations into
our operations; our ability to retain and hire key target
personnel; and the effects of any unknown liabilities. As a result
of such risks, uncertainties and factors, Shutterstock's actual
results may differ materially from any future results, performance
or achievements discussed in or implied by the forward-looking
statements contained herein. The forward-looking statements
contained in this press release are made only as of this date and
Shutterstock assumes no obligation to update the information
included in this press release or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise, except as required by law.
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SOURCE Shutterstock, Inc.