Shutterstock, Inc. , a leading global creative platform delivering high-quality creative content for transformative brands, digital media, and marketing companies, today announced that it has 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 that provides unlimited downloads of a diverse array of assets, templates, and more — a smart creative companion that helps creators stand out on a global scale.
Shutterstock Enters Definitive Agreement to Acquire Envato, with Envato Elements, Unlimited Creative Content Subscription
Founded in 2006 and headquartered in Australia with a presence in Mexico and New Zealand, Envato empowers millions of people around the world to buy and sell creative assets, use smart design templates, and learn creative skills. By combining a wide range of asset types, an extensive library, a compelling value proposition, and quality artwork, Envato helps creators complete their projects faster and more efficiently.
“We are thrilled with this transaction and look forward to welcoming the Envato team to Shutterstock,” said Paul Hennessy, Chief Executive Officer of Shutterstock. Envato is in an excellent position to meet customers’ growing need for an unlimited multi-asset subscription with a library of creative content, with a focus on videos, audio, graphics, fonts, and templates. By expanding our reach to faster-growing audiences and with additional types of content, this acquisition will help Shutterstock fulfill its mission of providing its customers with the content they need, wherever they are, so they can create, build, and share their next big idea. »
“From humble beginnings in a Sydney garage, Envato has generated more than $1.3 billion in revenue for its authoring community and now has 650,000 subscribers. I am extremely proud of the team for achieving this global scale as an independent company,” added Hichame Assi, Managing Director of Envato. As we enter this new chapter, we remain focused on nurturing the creative community and look forward to achieving this shared goal with Shutterstock. »
Former CEO and co-founder Collis Ta’eed expressed his gratitude to the community, saying he is “deeply grateful to everyone who has played a role, big or small, in our collective history.” Ta’eed added, “I will applaud from the sidelines, confident that we share the same commitment to innovation and creativity, as well as an ongoing commitment to our values.”
Strategic Highlights include:
- Complements Shutterstock’s existing offering with Envato Elements, a leading unlimited, multi-asset subscription offering
- Expands Shutterstock’s reach to a faster-growing audience such as freelancers, hobbyists, small businesses, and agencies
- With an additional 650,000 followers, Shutterstock’s subscriber base more than doubled to 1.15 million
- Increased Shutterstock content revenue from video, audio, graphics, fonts, and templates
- Shutterstock’s content library grows to include 10 million images, 6 million videos, 1 million audio clips, 0.5 million templates, and 0.2 million graphics and fonts
- Shutterstock is diversifying by offering new types of content, including web codes and themes, product mockups, fonts, and templates (e.g., Slides, PowerPoint, Keynote, WordPress, videos, social media post designs, games, podcasts, and print-on-demand)
Highlights of the transaction:
- Acquisition of 100% of Envato Pty Ltd for $245 million in cash at closing, after customary working capital and other adjustments
- Envato is expected to accelerate the achievement of Shutterstock’s long-term goals for 2027 by adding 20% to full-year revenue and 15% to full-year adjusted EBITDA
- Funded via a $375 million credit facility with expected leverage of 0.7 times net debt to 2024 combined adjusted EBITDA
- The transaction is expected to close in the third quarter, subject to customary closing conditions
For further information, please contact:
Investors can find a link to Envato’s acquisition presentation materials at: https://investor.shutterstock.com.
Funding 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 and legal advisors, respectively, to Envato.
