Apollo-Backed Shutterfly to Buy Spoonflower for $225 Million

(Bloomberg) -- Shutterfly agreed to buy home decor marketplace Spoonflower as the personalized-photography platform seeks to expand its reach in the creator economy.

Spoonflower, which specializes in fabrics and wallpaper, will be acquired for $225 million in cash and equity, including debt, in a deal that will add to earnings, according to an emailed statement from Shutterfly, which is controlled by Apollo Global Management Inc. The transaction is expected to be completed in the third quarter.

“We look at this as a very strategic acquisition,” Shutterfly Chief Executive Officer Hilary Schneider said in an interview Monday. “Home decor is our fastest-growing category, and with the addition of Spoonflower, our growth trajectory is going to accelerate further.”

Shutterfly’s consumer business has grown for eight straight quarters, said Schneider, declining to provide more detailed metrics. She cited the company’s photo tiles -- part of its wall art offerings -- as an example of products favored by consumers who have increasingly turned to do-it-yourself decorating during the pandemic.

The deal will give Shutterfly’s 21 million active users the ability to personalize fabrics, such as curtains and bed linens, she said. More than 1 million designs created by Spoonflower’s users will be at their disposal.

Spoonflower, which will continue to be led by CEO Michael Jones, counts Guidepost Growth Equity and Bull City Venture Partners among its early investors, according to PitchBook data.

Apollo’s private equity arm acquired Shutterfly in a 2019 leveraged buyout and later combined the company with Snapfish. The firm explored taking Shutterfly public through a special purpose acquisition company, the Wall Street Journal reported earlier this year. Schneider declined to comment on plans for a public listing.

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