Australian rich listers sell their tech firm Envato for $375m to America’s Shutterstock
An Australian couple will pocket $375m after selling the tech firm they created in their Bondi garage 18 years ago to New York-based Shutterstock.
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An Australian couple will pocket a ($US245m) $375m cash windfall after selling their digital assets company, Envato, to a US tech giant, 18 years after founding the business in their Bondi garage.
New York Stock Exchange-listed Shutterstock has acquired the tech firm from Cyan and husband Collis Ta’eed, who started the business in 2006.
The company recorded a $US18.5m net profit from $US190m revenue in the 2023 financial year.
The couple will remain as board members of the Melbourne-based company with Mr Ta’eed as chair.
“This acquisition is further recognition of the dynamic Australian creative startup industry and its contribution to the global stage - where homegrown innovation is shared worldwide,” Mr Ta’eed said.
“Over the years, we’ve been privileged to grow with this passionate community of creatives who have shown us the possibilities that arise at the intersection of technology and creativity. I am incredibly grateful for this and honoured to have been part of the impact and success of this creative community,” he said.
Shutterstock is an American provider of stock footage, photography and editing tools which has recently signed deals with Meta, Apple and Google to use millions of content from its library.
The Envato acquisition will boost its library with an additional 10 million images, 6 million videos, 1 million audio clips, 0.5 million templates and 0.2 million graphics and fonts.
Shutterstock CEO Paul Hennessy said the takeover will pave the way for future growth plans in the Asia-Pacific region.
“This acquisition will pave the way for our expansion into new products, audiences and content types. It also will propel us further into the dynamic Asia Pacific region, making a significant step toward achieving our future growth plans,” Mr Hennessy said.
Shutterstock said the deal will more than double its existing subscriber base to 1.15 million and bolster its 2027 long-term targets by adding 20 percent in annual revenues.
The $US245m cash purchase is for 100 percent of Envato Pty Ltd and the transaction is expected to be completed by the end of September.
Mr Ta’eed said he was optimistic for Envanto’s future as his Australian-based team embarks on a new chapter.
“I am eager to witness how it continues to shape and empower the creative community worldwide,” he said.
The Ta’eeds decided to move to the Northern Territory in 2021 where they want to bankroll First Nations-led charitable programs.
Originally published as Australian rich listers sell their tech firm Envato for $375m to America’s Shutterstock
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