Shutterstock acquires Envato in $245m deal to expanding digital creative content offering
Shutterstock, Inc. (NYSE: SSTK), a global creative platform, has announced a definitive agreement to acquire Envato Pty Ltd. (Envato) in a $245 million cash deal, expanding its creative content and subscription services. Envato is a leader in digital creative assets and templates, offering an unlimited download subscription through its flagship product, Envato Elements.
Strategic Highlights of the Acquisition
Shutterstock will integrate Envato Elements, significantly enhancing its current offering with unlimited multi-asset subscriptions. This strategic move will double Shutterstock’s subscriber base to 1.15 million, adding 650,000 subscribers while expanding its content library. The acquisition will diversify Shutterstock’s offerings by incorporating code and web themes, mock-ups, fonts, and a range of creative templates for digital and print media.
Paul Hennessy Welcomes Envato Team
Shutterstock CEO Paul Hennessy expressed enthusiasm over the acquisition, stating, “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 acquires Envato for $245 million, strengthening its creative platform with unlimited asset subscriptions, new content types, and a growing customer base.
Envato’s Growth and Global Scale
Founded in 2006, Envato has generated over $1.3 billion in earnings for its creative author community, scaling to 650,000 subscribers globally. Hichame Assi, CEO of Envato, remarked, “I feel an immense sense of pride in the team for achieving this global scale as an independent business.”
Collis Ta’eed Grateful for Community Support
Envato co-founder and former CEO Collis Ta’eed expressed gratitude to the community, emphasizing a shared dedication to innovation and creativity between the two companies.
Deal Financials
Shutterstock will fund the $245 million acquisition through a $375 million credit facility. The transaction is expected to boost annual revenues by 20% and annual adjusted EBITDA by 15%, accelerating the company’s progress toward its 2027 targets. The transaction will likely close in the third quarter of this year.
This acquisition aligns well with Shutterstock’s strategic goals, bolstering its multi-asset subscription service and content library while expanding its reach among creative professionals.