Personal publishing service Shutterfly on Monday announced the acquisition of Tiny Prints, a privately owned company that specializes in stationary items such as announcements and invitations, for $333 million in cash and stock. The deal, which is expected to close in 30-60 days, includes $141 million in cash for all of Tiny Prints' outstanding stock and roughly 3.9 million shares of Shutterfly common stock.
Founded in 2004, Tiny Prints operates both TinyPrints.com for common announcements and invitations, as well as WeddingPaperDivas.com for wedding-specific invitations (save the date, rehearsal dinner, etc.). Both services allow users to customize their announcements/invitations and select from designs created by top artists.
The company raised an undisclosed amount of funding in 2008 in a Series A round led by Technology Crossover Ventures and Summit Partners. Upon the close of the deal, the company's three founders and the entire Tiny Prints team (which numbers in the 200+ range) will move over to Shutterfly.
"We believe the integration of our businesses will create near-term and long-term opportunities for enhanced merchandising, accelerated product innovation and significant scale efficiencies in manufacturing, customer service and marketing. We are excited to welcome the entire Tiny Prints team to Shutterfly," said Shutterfly president and CEO Jeffrey Housenbold in a prepared statement.
Shutterfly, a popular publishing service that lets users create calendars, photo books, and other items using their own photos, also announced higher-than-expected revenues for the quarter ending March 31, 2011. The company anticipates net revenues to be in the $53-$55 million range, compared to the previously anticipated $52-$53 million range. Founded in 1999, the company is best known for its flagship photo book line. It also guarantees free and unlimited photo storage, as well as free online photo sharing. In 2006, the company raised $87 million in its initial public offering.
In November, Shutterfly announced its acquisition of digital marketing company WMSG for $6 million.
image source: TinyPrints.com