New York-based private equity firm Apollo Global Management is acquiring both Shutterfly and Snapfish, and plans to merge the rival online photo services company.
Apollo will pay $1.7 billion for Shutterfly, plus assume $900 million in Shutterfly debt. It will pay a reported $300 million for Snapfish.
Once the paid of acquisitions are complete, District Photo will be a significant minority owner of the combined company.
“The Apollo Funds bring substantial financial resources as we continue to invest in innovation, as well as valuable strategic perspectives to drive growth over the coming years,” said District Photo CEO Neil Cohen.
“We are committed to supporting the company and continuing our relationship as a fulfillment partner,” he said, without elaborating on the size of District Photo’s role in the merged companies’ online photo processing services.
“We are excited to work with Neil and the Snapfish team in this transaction, and to benefit from their market expertise after three generations in the photo product business,” said David Sambur, senior partner at Apollo.
San Francisco-based Snapfish is owned by Beltsville, Maryland-based District Photo, a company that has been in the photo processing business since 1949.
It acquired Snapfish in 2001, then sold it to Hewlett-Packard in 2005, before reacquiring Snapfish in 2015.
Apollo’s acquisitions of both Shutterfly and Snapfish are expected to close in the fourth quarter, subject to regulatory approval.
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