Comprehensive M&A data with integrated detailed company information
‘Apollo leading race for Shutterfly’
Posted on Monday, 10 June 2019 12:28
Private equity firm Apollo Global Management is leading the field in the battle to acquire US photo book company Shutterfly, people familiar with the matter told Reuters.
According to the sources, who did not wish to be identified as the matter is confidential, the investor has submitted an approach which would value the company, which was founded in 1999, at almost USD 2.00 billion, not including its USD 900.00 million-worth of debt.
An announcement could take place later this week, although negotiations are still underway, the people added.
So far, none of the companies involved have commented on the report.
A sale of Shutterfly was first reported in early February, when the firm’s board announced a strategic review of the business, which is publicly traded on Nasdaq.
In April, Apollo and Cerberus Capital Management were named as prospective suitors.
Reuters noted that increased commoditisation of Shutterfly’s business, as well as higher levels of competition in the field, resulted in a sale being considered.
Chairman of the board Will Lansing said the firm would consider all options which would maximise value for shareholders.
Shutterfly’s stock finished the day at USD 48.95 on 7th June, the last trading day prior to the latest Reuters report. Under these terms, the company could be valued at USD 1.67 billion.
The company is itself no stranger to the acquisition trail, having picked up Minnesota-headquartered portrait photography services provider Lifetouch for USD 825.00 million in early April of 2018.
Zephyr, the M&A database published by Bureau van Dijk, shows that its last purchase prior to that was in November 2014, when it took over mobile photo book software developer Dot Graphics in a USD 14.50 million deal.
Shutterfly claims to be the leading retailer and manufacturing platform for personalized products and communications.
The firm posted net revenue of USD 1.96 billion in 2018, up from USD 1.19 billion over the preceding 12 months.
© Zephus Ltd