Shutterstock, a prominent global creative platform, has signed a definitive agreement to acquire Envato, a leader in digital creative assets and templates for WordPress (and other platforms), for $245 million. The purchase will include 100% of Envato Pty Ltd, with the deal expected to close in the third quarter of 2024 after standard working capital and adjustments.
This acquisition aims to accelerate Shutterstock’s growth by broadening its product offerings, reaching new audiences, and diversifying content types. Envato’s flagship product, Envato Elements, offers a creative subscription service that provides unlimited downloads of various assets and templates. This will complement Shutterstock’s existing services, enhancing its value proposition to customers.
Envato’s Background and Achievements
Founded in 2006 and headquartered in Australia, Envato has expanded its reach with offices in Mexico and New Zealand. The company facilitates the buying and selling of creative assets, smart design templates, and the learning of creative skills. It has generated over $1.3 billion in earnings for its author community and boasts 650,000 subscribers.
Financial and Industry Impact
The acquisition is projected to increase Shutterstock’s annual revenue by approximately 20%. To support this acquisition, Shutterstock has secured $375 million in credit. This deal comes on the heels of Digital Juice, another digital asset provider, closing operations in January 2024 due to the passing of its founder, Dave Hebel. Digital Juice’s closure highlighted the industry’s need for adaptability, a trait Shutterstock and Envato have demonstrated.
Benefits for Employees and Customers
Envato’s CEO, Hichame Assi, expressed optimism about the acquisition, highlighting the positive impact on employees and the company’s future. The integration with Shutterstock is expected to enhance the range of creative assets and tools available to customers, significantly benefiting the creative industry, particularly in graphic design, video production, and digital media.
The acquisition of Envato by Shutterstock marks a significant development in the creative industry. It promises to expand the tools and resources available to creative professionals, reinforcing Shutterstock’s position as a leader in providing high-quality creative content.
