Shutterstock pays $110M to acquire PicMonkey, a photo editing and graphic design software maker

(PicMonkey Image)

Publicly-traded photography giant Shutterstock has acquired PicMonkey, a Seattle startup founded nine years ago that provides online photo editing and graphic design tools.

Shutterstock paid $110 million in cash for the deal, which will contribute about 3% to the company’s annual revenues and add more than 200,000 subscribers.

Shutterstock, which went public in 2012, reported revenue of $189.9 million for its second fiscal quarter this year, up 16%, and 321,000 subscribers, up 44%.

The New York-based company launched nearly two decades ago. It is known as a global provider of stock photography but also offers creative tools and music/video clips.

Shutterstock said integrating PicMonkey will “further empower our customers, regardless of their skill level or expertise, to create beautiful, best-in-class content with efficiency and ease in just a few clicks.” It estimates the market opportunity for creative software and design tools at $8 billion.

Founded in 2012, PicMonkey targets small businesses and brands with its suite of cloud-based tools. The company said 10 billion images have been made on its platform. PicMonkey’s product will continue to exist; its stock photography will now be provided by Shutterstock.

PicMonkey employs around 40 people. The startup raised $41 million in 2015 from Spectrum Equity. It is currently led by CEO Frits Habermann, a former exec at Adobe, Lynda.com, and PopCap Games. Chairman Jonathan Sposato, the company’s former CEO, previously helped start another photo-editing tool called Picnik that was sold to Google.

In July, Shutterstock paid $35 million to acquire three AI entities: Pattern89 Inc., Datasine Limited and assets from Shotzr, Inc.

Editor’s note: GeekWire chairman Jonathan Sposato is chairman of PicMonkey.

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