Interesting acquisition.
“It's a good deal, right? The US leader in consumer photo print products, Shutterfly, buys the US leader in professional photo print products, Lifetouch, for $825M, less than 1 x Lifetouch's annual revenues of $964M. Lifetouch caters to professional photographers who provide their services at schools, churches, and portrait studios - markets that are complementary to Shutterfly's. Lifetouch is also profitable with EBITDA of $111M. Shutterfly's revenues will almost double in the short term, and over time I expect the companies will integrate operations, which should produce significant cost savings. It's no surprise that yesterday Shutterfly's stock shot up by 19%.”
Read the full article here on VISUAL1ST
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