Shutterfly has announced it will acquire Spoonflower, which prints custom fabric, wallpaper, and gift wrap, for $225 million including debt. Payment will be made using a mix of cash and equity.
The deal comes two years after private equity giant Apollo Global Management took Shutterfly public in a leveraged buyout (LBO). After taking it private, Apollo merged the company with Snapfish, a web-based photo sharing and photo printing service.
Now, the company has completed eight straight quarters of growth and Apollo is reportedly taking the company public using a special purpose acquisition company (SPAC). However, it is uncertain if those plans are still in the works after SPACs have struggled to perform in recent months.