Shutterfly, an Internet-based image publishing service based in Redwood City, California, to be acquired by Qatalyst Partners to private equity firms, including Bain Capital and Silver Lake Partners.
After opening at $49.59, to Shutterfly shares spiked to $54.78 on the news mid-morning, but were trading around $51 later in the day.
It’s unclear what price the private equity firms would pay for the photo printout and gifting company, but Reuters reports that firms may borrow more than seven times Shutterfly’s EBITDA in a leveraged buyout. It is also unclear whether the purchase price would meet the expectations of Shutterfly’s board, with final offers expected in September.
Shutterfly shares have remained constant in the past year, but analysts point to lower margins, due to increased competition and a shrinking market share for the existing business model.
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Shutterfly, Redwood City, California, Qatalyst Partners, Bain Capital, Silver Lake Partners, Reuters, EBITDA.