CafePress Sells for More Than $25 Million
The acquisition is said to result in a collective platform for creating custom products, both photo- and non-photo-based.
Personalized photo service Snapfish and merchandise and personalized gift retailer CafePress announce a merger agreement. The acquisition is said to result in a collective platform for creating custom products, both photo- and non-photo-based.
CafePress, a Louisville, Kentucky-based company, plans to sell its outstanding shares of common stock to Snapfish for more than $25 million. The acquisition comes seven months after CafePress announced company layoffs, the exit of board members, and a 22 percent gross profit drop for 2017. Although CafePress did see some growth in August, it struggled to stay in Google’s top search results in various product categories.
According to a Nasdaq release on the announcement, “The transaction is expected to provide additional scale to two companies with almost 40 years of combined experience in the photo and personalization space. The transaction, once closed, would enable Snapfish to access over one billion content items, and a massive array of designs that are crowdsourced from a global community of more than two million independent designers.”
The merger is also expected to create partnerships with major entertainment companies.
“We are looking forward to welcoming CafePress and its employees into the Snapfish organization and working with them during the next phases of each company’s evolution,” said Jasbir Patel, CEO of Snapfish. “We look forward to leveraging CafePress’ highly efficient and innovative manufacturing process to further enhance our manufacturing capabilities. We are excited to combine our efforts to provide our customers more options and more value.”
On Sept. 28, Fred Durham, founder and CEO of CafePress, said, “Today marks a critical turning point in our pursuit to return CafePress to its market-leading position in the personalized and expressive gift category. We are excited about the opportunity to accelerate growth by leveraging our content portfolio across Snapfish’s distribution channels. We take great pride in being the pioneer of offering personalized and custom merchandise to consumers and believe this transaction provides an opportunity to further our leading position as well as return value to our stockholders.”
The acquisition is anticipated to close in early November.
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