Shutterfly, Inc. (NASDAQ:SFLY) the major online manufacturer and retailer of high-quality personalized services and products, and Lifetouch, the national pioneer in school photography, reported a definitive deal for company to buy privately-held Lifetouch for cash amounting to $825 million.
Christopher North, the CEO and President of Shutterfly, expressed that Lifetouch and Shutterfly are two undisputed pioneers in their respective industries. They are both built around the objective of helping consumers share life’s joy via photos. The two firms are exclusively well suited for one another, with comparable target customers and complementary manufacturing proficiencies. Most thrilling of all is the prospect to bring together Lifetouch’s innovative access to many families who value premium-quality photographic portraits with company’s cloud photo management, product creation capabilities and product breadth.
Together, the two firms will support each other’s respective plans, enhancing shareholder value through customer growth and significant cash flow and incremental profits. The CEO of Shutterfly added that they are thrilled to welcome the Lifetouch team to their family. Lifetouch is the clear pioneer in school photography. The firm photographs over 25 million children yearly during the valued fall picture day custom, serving over 10 million households, counting over one million fresh kindergarten households yearly, across over 50,000 schools.
In Lifetouch’s fiscal year closed June 30, 2017, Lifetouch revenue came at $963.9 million, while EBITDA was $111.3 million. Lifetouch offers Shutterfly with an extremely complementary business. Shutterfly projects to gain access to several Lifetouch clients as Shutterfly consumers, where they will gain from Shutterfly’s major cloud-photo management service, mobile app, broad product range and product creation capabilities.
Lifetouch can provide Shutterfly’s extensive product range to the Lifetouch consumer, as well as to boost the development of Lifetouch’s web platform. The firms also anticipate to realize notable supply chain, fulfillment and manufacturing synergies over time.