Private-equity firm Apollo Global Management has agreed to acquire US digital imaging company Shutterfly in a deal worth US$2.7 billion in total, Reuters reports.
The buyout firm said on Monday that it will pay US$51 per share in cash for Shutterfly, a 13 percent premium to the company’s value on Feb. 5, the last trading day before it announced it would explore a sale, according to the report.
The deal is the culmination of several years of private-equity interest in Shutterfly, which allows customers to make photo books, cards and gifts from their photos.
The digital imaging firm was forced to explore a sale as it business has become increasingly commoditized and competitive, Reuters noted.
Apollo also announced it will acquire privately held Snapfish, an internet-based retailer of photography products, to merge it with Shutterfly.
Headquartered in Redwood City, California, Shutterfly makes personalized consumer photo products such as photo books, holiday cards, invitations and stationery.
Founded in 1999, Shutterfly faces increasing competition from other online digital photography services companies such as Snapfish and Vistaprint, as well as brick-and-mortar retailers such as Wal-Mart, Costco and Target that offer low-cost digital photography products and services.
Shutterfly was approached by several buyout firms over the years about a deal, including by Thomas H. Lee in 2016 and Silver Lake Partners LP in 2014, Reuters has previously reported.
In February, Shutterfly said its board had formed a committee to explore its options with the help of investment bank Morgan Stanley after receiving acquisition interest from an undisclosed party.
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