Shutterstock, Inc., a leading global creative platform, has announced the completion of a definitive agreement to acquire Envato Pty Ltd., a significant player in the digital creative assets and template market. Envato’s flagship product, Elements, offers an unlimited subscription for diverse creative content, which will act as a smart creative companion globally. Founded in 2006 and based in Australia, with a presence in Mexico and New Zealand, Envato enables millions to buy and sell creative assets, use smart design templates, and acquire creative skills. By combining a broad range of asset types, a vast library, a compelling value proposition, and high-quality artwork, Envato empowers creators to complete their projects faster and more efficiently. Shutterstock CEO Paul Hennessy expressed excitement about the acquisition, which will help meet the growing demand for an unlimited multi-asset subscription with a creative content library, especially emphasizing videos, audio, graphics, fonts, and templates. This strategic expansion is expected to double Shutterstock’s subscriber base to 1.15 million with the addition of 650,000 from Envato, which has generated over $1.3 billion in revenue for its author community. The deal includes noteworthy strategic elements such as increasing Shutterstock’s content revenue from new asset types and deepening its library with an additional 10 million images, 6 million videos, 1 million audio clips, 500,000 templates, and 200,000 graphics and fonts. Furthermore, Shutterstock is set to diversify by offering new content types such as web codes and themes, mockups, fonts, and templates for various applications. The financial aspect of the transaction involves the acquisition of 100% of Envato Pty Ltd for $245 million in cash at closing, subject to customary working capital and other adjustments. Envato is anticipated to help Shutterstock achieve its long-term 2027 goals, adding 20% to annual revenue and 15% to annual adjusted EBITDA. The acquisition is financed through a $375 million credit facility with an expected leverage of 0.7 times 2024 combined net debt to adjusted EBITDA ratio. The closing of the deal is projected in the third quarter, subject to typical closing conditions. Bank of America, Citigroup, Wells Fargo, and Citizens are providing transaction financing, with CapM Advisors and White & Case LLP acting as financial and legal advisors to Shutterstock, respectively. Meanwhile, Drake Star Partners, Goodwin Procter LLP, and King & Wood Mallesons served as financial and legal advisors for Envato.

Visual Content Providers, Creative Software and Services, Digital Media and Marketing,United States, Australia, Mexico, New Zealand

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