Shutterfly (NASDAQ:SFLY) recently announced an $825 million acquisition deal with privately-held Lifetouch. Shutterfly is the topmost manufacturer as well as online retailer providing high-quality personalized services and product. Lifetouch is known as the national leader in school photography.
The President and Chief Executive Officer of Shutterfly, Christopher North said that both the companies are undisputed leaders in their respective industries and are working around one mission of helping the customers share joys of life through photos. North stated that both Shutterfly and Lifetouch are uniquely well suited to one another with similar target customers and complement each other when it comes to their respective manufacturing capabilities.
According to North, the most exciting of all is that the two companies have the potential to come together since Lifetouch already has a unique access to millions of families valuing high-quality photographic portraits. On the other hand, Shutterfly is known for special features such as product breadth, cloud photo management, and product creation capabilities.
When these two companies with high-potential features will team up the process will increase the respective strategies of both of them thereby driving the shareholder value through significant incremental profits, cash flow, and consumer growth. North said that they are excited to usher in the Lifetouch team to the family of Shutterfly.
Lifetouch To Provide Shutterfly With A Highly Complementary Business
Lifetouch leads the school photography market and photographs over 25 million children every year during the cherished fall picture day tradition thereby serving over 10 million households and more than 1 million new kindergarten households every year and over 50,000 schools. So with this new acquisition, Shutterfly will gain a highly complementary business through Lifetouch.
Shutterfly is expecting to gain direct access to such Lifetouch customers who will then benefit from the leading cloud management service, mobile app, product creation capabilities, and vast range of products of the company. Shutterfly will get access to broader product range through Lifetouch which will also increase the online platform of the school photography leader.