Shutterfly announced an agreement to acquire Spoonflower, a Durham, N.C.-based artists marketplace, in “an accretive acquisition for approximately $225 million of enterprise value subject to certain working capital and other adjustments,” the company said in an announcement. The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2021.
According to Crunchbase, Spoonflower raised $25 million in three rounds. Spoonflower’s lead investors include Guidepost Growth Equity and Bull City Venture Partners. KeyBanc Capital Markets Inc. is acting as the exclusive financial advisor to Spoonflower. Since earlier this year, the company has been touting its rapid growth, in part driven by COVID-19 shutdown. Company founder and CEO Michael Jones told Hypepotomus, a southeast-based tech blog, Spoonflower’s growth took off like a “rocketship” during the pandemic. Consumers, stuck at home, needed materials for home projects, masks, blankets and more; orders surged to the point the company double the size of its factory to 50,000 square feet and added three industrial printers.
In August, 2020, the privately held company reported growth boomed 162% year over year (YoY) and told the Durham Herald Sun in February 2021, it was going on a hiring spree by adding 100 employees over the coming months to its 350-person local staff.
Spoonflower brings new customers
For Shutterfly, the move taps into a new source of customers seeking creative output products (as well as bringing yet another brand to the Shutterfly family comprised of two words sandwiched together, like “Shutterfly,” “Lifetouch,” “Snapfish” and “BorrowLenses.”)
“We are excited to welcome Spoonflower to the Shutterfly family of brands,” said Hilary Schneider, CEO of Shutterfly. “Millions of consumers use Spoonflower to make and upload their own designs on premium fabric, wallpaper, and home decor, ignite their entrepreneurial spirit by launching small businesses or express their personal style by shopping the marketplace of more than one million designs. Driven by its passionate creative community and visionary management team, Spoonflower has also experienced explosive growth over the last 18 months amid the thriving DIY consumer movement. It’s a highly complementary strategic fit for Shutterfly and a win/win for consumers, employees, and members of our creative community alike.”
Based in Durham and with an international office in Berlin, Germany, Spoonflower was founded in 2008. The company offers custom, print-on-demand fabric, wallpaper and home decor designed by global independent artists, makers, consumers, interior designers, and small business owners. The acquisition follows a year of record revenue growth for Spoonflower, which boasts more than one million designs.
“The Research Triangle Park (RTP) area – the tech hub encompassing Raleigh, Durham and Chapel Hill, NC – is also home to a talented workforce and an entrepreneurial culture,” added Schneider. “We are excited to have a growth hub in RTP for further expansion across Shutterfly.”
“Not only will Spoonflower now enable Shutterfly consumers to buy artists’ customized design creations in addition to personalizing their own, but we will also unlock the ability to reach new audiences and scale the small businesses of our incredible creative community thanks to Shutterfly’s manufacturing expertise and expansive customer reach,” said Michael Jones, CEO of Spoonflower.
Spoonflower will retain its distinct brand, culture and team structure. Jones will continue to lead Spoonflower, reporting to Schneider.