Shutterstock, Inc., a prominent global creative platform, announces its acquisition of Envato Pty Ltd., a leader in digital creative assets and templates. This transformative move aims to enrich Shutterstock's creative offerings and extend its reach to a wider audience through Envato's flagship product, Elements.

1. Envato's Strengths and Contributions:

   • Envato, founded in 2006, offers a diverse array of digital creative assets and templates, notably its Elements subscription providing unlimited downloads.
   • With a global presence and a focus on enhancing creativity, Envato has facilitated over $1.3 billion in earnings for its author community and amassed 650k subscribers.

2. CEO Statements and Vision:

   • Shutterstock CEO Paul Hennessy expresses enthusiasm for the acquisition, highlighting Envato's alignment with the growing demand for multi-asset subscriptions and its emphasis on various content types.
   • Envato CEO Hichame Assi underscores the shared commitment to empowering the creative community and achieving growth together with Shutterstock.

3. Strategic Highlights of the Acquisition:

   • The acquisition complements Shutterstock's offerings with Envato Elements, expands its audience reach to freelancers, small businesses, and agencies, and adds 650k subscribers to its base.
   • Shutterstock's content revenue is expected to grow with the inclusion of Envato's diverse content library, spanning images, videos, audio clips, templates, and graphics & fonts.

4. Transaction Details:

   • The acquisition involves a $245 million cash purchase of 100% of Envato Pty Ltd, expected to close in the third quarter, subject to customary conditions.
   • Financing is facilitated through a $375 million credit facility, aiming to accelerate Shutterstock's long-term targets and maintain favorable leverage ratios.

Shutterstock's acquisition of Envato marks a significant milestone in expanding its creative offerings and audience reach. With Envato's Elements subscription and diverse content library, Shutterstock strengthens its position as a premier destination for creative professionals worldwide, fostering innovation and empowering creators to realize their visions.