Silver Lake in the lead to acquire Shutterfly -sources
Reuters
Published Sep 22, 2014 01:12PM ET
Silver Lake in the lead to acquire Shutterfly -sources
By Nadia Damouni and Greg Roumeliotis NEW YORK (Reuters) - Private equity firm Silver Lake is in advanced talks to acquire online photo-sharing service Shutterfly Inc for at least $2 billion, people familiar with the matter said on Monday.
Silver Lake has outbid other buyout firms in an auction for Shutterfly and is now negotiating the terms of an acquisition, the sources said. They cautioned that the talks might not lead to a deal, given Shutterfly's high expectations for a sale price.
Silver Lake is in discussions to pay more than $50 per share for Shutterfly, although the deal price is not yet final, one of the sources said.
Shares of Shutterfly, which closed Friday at $47.52, were up 5.1 percent at $49.93 in afternoon trading on Monday.
The sources requested anonymity because the negotiations are confidential. Silver Lake and Shutterfly declined to comment.
Based in Redwood City, California, Shutterfly allows customers to use their photographs to make books, cards and gifts. It competes with Hewlett-Packard Co's Snapfish service, which Reuters reported earlier this month is also up for sale.
Shutterfly hired boutique investment bank Qatalyst Partners LLC to explore strategic alternatives earlier this year amid increasing competition in its market, people familiar with the matter previously said.
If Silver Lake acquires Shutterfly, this would be the first major U.S. deal for buyout firms in the sector since Carlyle Group LP's acquisition of photo agency Getty Images from Hellman & Friedman LLC in October 2012 for $3.3 billion, including debt.
Silver Lake is a technology-focused private equity firm with more than $23 billion in assets under management. Among its acquisitions are computer maker Dell Inc and talent agency IMG Worldwide.
(Reporting by Nadia Damouni and Greg Roumeliotis in New York; Editing by Alden Bentley and Lisa Von Ahn)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.