Shutterfly will seek to advance its manufacturing and digital capabilities to reinforce sustainable growth
Shutterfly, a digital imaging company, has reportedly agreed to be acquired by Apollo Global Management, a New York-based private equity firm, in a deal which will value the company at $2.7 billion.
Sources close to the matter mentioned that Apollo Funds will formally buy all remaining shares of Shutterfly for $51 per share in cash, which signifies a premium of about 1.5% to closing price of Shutterfly on 10 June 2019.
Apparently, Shutterfly had ended the trading day up 2.7%, and was halted in afterhours trading. Later, shares had resumed trading a fraction of 1% lower.
According to Chairman of Board at Shutterfly, William Lansing, the company is looking forward to working closely with Apollo for building a compelling service that allows deeper and more personal relationships for their customers. The firm also seeks to advance its manufacturing and digital capabilities to reinforce sustainable growth, he said.
In a recent announcement, Shutterfly had officially named Ryan O’Hara as CEO and President of the company, effective from June 24. Apollo reportedly aims to combine Shutterfly with its rival company Snapfish, the owners of which will become minority shareholders in the merged company.
David Sambur, senior partner at Apollo, commented that Shutterfly has been able to cultivate substantial connection with customers. The company is leading in personalized photo products and school photography in an era where billions of photographs are being taken each day, he remarked.
In 2018, Shutterfly had acquired privately-owned Lifetouch, an American-based photography company and the national leader in school photography.
For the uninitiated, Shutterfly, Inc. is a US based company, headquartered in Redwood city, California. The company is a manufacturer and online retailer, providing personalized stationery and other related products and services. It enables users to create personalized photo gifts like photo book, home décor, wall art, and smartphone case.