Shutterstock to Acquire Envato, Featuring Envato Elements, the Unlimited Creative Content Subscription for $245M

Author: Benzinga Newsdesk | May 02, 2024 06:04am

 Shutterstock, Inc. (NYSE:SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced that it entered into a definitive agreement to acquire Envato Pty Ltd. ("Envato"), a leader in digital creative assets and templates. Envato's flagship product, Elements, is a creative subscription providing unlimited downloads of a diverse array of assets, templates and more—an intelligent creative companion helping creatives make their mark globally.

Transaction Highlights:

• $245 million cash purchase of 100% of Envato Pty Ltd at closing, after customary working capital and other adjustments

• Expected to accelerate path to Shutterstock's 2027 long-term targets with Envato adding 20% to annual revenues and 15% to annual adjusted EBITDA

• Financing via a $375 million credit facility with expected drawn leverage of 0.7x net debt to 2024 combined adjusted EBITDA

• Expected transaction closing in the third quarter, subject to customary closing conditions

Posted In: SSTK