Shutterstock Acquires Rex Features & Premium Beats

Shutterstock, Inc., a leading global provider of commercial digital imagery and music, has entered into a definitive agreement to acquire Rex Features, the largest independently owned photographic press agency in Europe.

Rex offers media companies and advertisers images and videos that capture the world around us, including a live feed of tightly edited celebrity, entertainment, sports and news images and videos, along with access to a multi-decade archive of iconic images.  With Rex’s editorial expertise and Shutterstock’s technical prowess, the combined companies plan to bring a comprehensive offering to market across both editorial and commercial content.

“The acquisition of Rex Features marks our substantive entry into editorial imagery — a new market for Shutterstock with significant potential and many opportunities to better serve global media companies,” said Jon Oringer, Shutterstock founder and CEO.

The purchase price is approximately $33 million, substantially all of which will be paid in cash.  The company expects to update its 2015 financial outlook for the impact of this transaction when it reports fourth quarter 2014 earnings..

Shutterstock has also acquired PremiumBeat, leading  provider of royalty free music.

“We are excited to add such a complementary business in PremiumBeat, with a fast-growing customer base and an extraordinary collection,” said Jon Oringer, founder and CEO of Shutterstock.  “We understand the intersection between music and video and believe that music licensing will benefit from the same, strong market demand we are capitalizing on with video.”

The purchase price consists of initial consideration of approximately $32 million in cash. Additional consideration is payable upon the achievement of certain operating and financial goals through 2018. The company expects to update its 2015 financial outlook for the impact of this transaction when it reports fourth quarter 2014 earnings.