Shutterstock, Inc. (NYSE: SSTK), a leading global provider of commercial digital imagery and music, has entered into a definitive agreement to acquire PremiumBeat, a leading provider of exclusive, high-quality music and sound effects for use in videos, films, television, apps, games, and other creative projects.
Given the rising importance of video and interactive content, creators around the world increasingly seek affordable, high-quality music to bring their projects to life. Earlier this year Shutterstock set out to make licensable music accessible to any business with the launch of Shutterstock Music; the acquisition of PremiumBeat will help to accelerate this mission. PremiumBeat works with leading composers to offer a high-quality library of exclusive music to the world's best businesses, including advertising and media agencies, as well as Fortune 500 companies.
"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."
Shutterstock recently surpassed the milestone of more than one million video clips licensed.
"We share the same vision as Shutterstock to support video editors, marketers and content creators around the world as they tell engaging stories," said Francois Arbour, CEO of PremiumBeat. "We are excited to leverage Shutterstock's global reach and leadership in video licensing. Advancing forward together provides tremendous benefit to our customers, our musicians and our team. It really is the perfect fit."
With offices in Montreal and Dallas, PremiumBeat will continue under the leadership of Francois Arbour, who will expand his responsibilities to lead music globally for Shutterstock and focus on further growth.
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.
