On May 2, 2024, Shutterstock, Inc., a global provider of high-quality creative content, declared its entry into a definitive agreement to purchase Envato Pty Ltd., a key player in digital creative assets and templates known for its unlimited subscription service, Envato Elements. This acquisition, initiated for $245 million in cash at closing after adjustments, is set to double Shutterstock’s subscriber base to 1.15 million, bringing a combined total of 10 million images, 6 million videos, 1 million audio clips, 500,000 templates, and 200,000 graphics and fonts to their extensive library. Envato’s CEO expressed pride and motivation, whereas the former CEO and co-founder acknowledged the collaborative progress. The transaction, financed through a $375 million credit facility with anticipated leverage of 0.7x net debt to combined 2024 adjusted EBITDA, is expected to close in Q3, subject to regular closing conditions. The deal aims to drive Shutterstock towards its 2027 revenue and adjusted EBITDA targets by adding 20% and 15% respectively, while broadening the reach within growing segments such as freelancers and small businesses. Advisors like Bank of America, Citigroup, Wells Fargo, Citizens, CapM Advisors, White & Case LLP, Drake Star Partners, Goodwin Procter LLP and King & Wood Mallesons played pivotal roles. Official information regarding the acquisition can be found on Shutterstock’s investor webpage.

Creative & Digital Media, Financial Services, Legal Services,United States, Australia, Global