The 7 reasons behind 41 recent acquisitions
in the photo & video industry
[Scroll down for AND a few more things... imaging industry news highlights]
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The question often comes up at our Visual 1st conference and in our strategic client workshops: What criteria to apply when selecting potential targets for strategic acquisition? And, from the standpoint of startups seeking an exit, how to select suitable potential acquirers?
Examining recent trends can provide helpful insights on these vital issues, so I’m happy to share a brushstroke analysis of 41 recent acquisitions in the photo & video space aimed at discerning the most compelling rationale behind each of these acquisitions.
Seven primary “reasons to acquire” stand out from this process.
They are:
- Economies of Scale
- Vertical Integration
- Market Share Gains
- Geographical Diversification
- Product Diversification
- Financing Opportunities
- Acquisition of Technology or Talent
Note that I have only assigned one – the assumed most important – reason behind each acquisition. In reality, there are usually multiple reasons behind an acquisition. For instance, a company might decide to acquire a supplier (vertical integration) which has a first-class engineering team with skills that are also valuable to the acquiring company (acquisition of technology or talent).
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1. Economies of Scale
Larger companies benefit from cost savings compared to smaller entities.
Example:
A wall decor producer adding photo print product partners: Sensaria acquires Canvaspop, Bay Photo, and Graphik Dimensions
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2. Vertical Integration
Vertically integrated companies benefit from cost savings and increased control
Examples:
Social media network adding AR display hardware: Snap acquires WaveOptics
Personalized print provider adding DIY design tools and photo marketplace: Vistaprint acquires Crello, 99designs and Depositphotos.
Pro-photo solutions provider adding photo print products: Foreground acquires Collage.com
Social media video network adding VR hardware: Bytedance/TikTok acquires Pico Interactive
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Acquired companies
99designs
AI.Reverie
Albelli
Bay Photo
CafePress
Canvaspop
Capturelife
Clipchamp
Collage.com
Crello
Datasine
DeepCraft
Depositphotos
Dubsmash
Fit Analytics
Format
Frame.io
Framen
Frucon²
Fyusion
Graphik Dimensions
Greetz
I See Me!
Johnson Photography
Kaleido
Lasting Images Photography
Monalbumphoto SAS
NextVR
Pattern89
Photobox
PicMonkey
Pico Interactive
Seachange
Shotzr
Spoonflower
Trash
Unsplash
VOCHI
WaveOptics
Wibbitz
Wirewax
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3. Market Share Gains
Companies enjoy marketing and sales advantages by achieving leadership in their market
Examples:
Canadian school photography market: Edge Imaging acquires Lasting Images Photography and Johnson Photography
Stock photography market: Getty acquires Unsplash
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4. Geographical Diversification
Companies benefit from being able to expand into other geos
Examples:
Expanding in Europe: Holland-based Albelli acquires France-based Monalbumphoto SAS
Expanding in Europe: UK-based Photobox/Moonpig acquires Holland-based Greetz
Expanding in Europe: Germany-based CEWE acquires France-based Cheerz
Merging in Europe: Holland-based Albelli merges with UK-based Photobox
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5. Product Diversification
Companies enjoy higher revenues and/or reduced risk when gaining the ability to sell new products to existing or new customers
Examples:
General software vendor adding video creation functionality: Microsoft acquires Clipchamp
Imaging app and community vendor adding video AI expertise: PicsArt acquires DeepCraft
Publisher adding micro-targeted video streaming: Axel Springer acquires Framen
Stock content platform adding design creation tools: Shutterstock acquires PicMonkey
Photo print product provider adding user-customized on-demand products: PlanetArt acquires CafePress
General hardware and software company adding VR broadcasting: Apple acquires NextVR
Imaging and marketing software company adding video collaboration: Adobe acquires Frame.io
Photo print product provider adding personalized children’s book creation: PlanetArt acquires
I See Me!
Volume photography solution provider adding photo engagement tools: ASG acquires Capturelife
Photo print product provider adding textiles and wallpaper marketplace: Shutterfly acquires Spoonflower
Photo print product provider adding personalized gifting: Smartphoto acquires Frucon²
Social media network adding virtual e-commerce enabler: Snap acquires Fit Analytics
Photo editing and community app adding AI-powered video editing: VSCO acquires Trash
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6. Financing Opportunities
Companies can tap into additional financing resources
Example:
Going public through reversed merger: Triller merges with Seachange
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7. Acquisition of Technology or Talent
Companies boost existing products or services by acquiring new technology and/or talent
Examples:
Stock content platform boosting AI functionality: Shutterstock acquires Pattern89, Datasine, and Shotzr
Social media network boosting video creation: Reddit acquires Dubsmash
Social media network boosting synthetic data creation to train ML: Meta acquires AI.Reverie
Visual bookmarking platform boosting video creation: Pinterest acquires VOCHI
Car technology platform boosting 3D imaging: Cox Automotive acquires Fyusion
DIY design platform boosting photo & video editing: Canva acquires Kaleido
Video streaming and creation platform boosting video creation and video shopping: Vimeo acquires Wibbitz and Wirewax
Pro-photo solutions provider boosting website creation: Zenfolio acquires Format
Note that, while I’ve only pointed out one primary rationale for each acquisition (the one that seemed most compelling in the particular case), in reality, there are usually multiple reasons behind an acquisition. For instance, a company might decide to acquire a supplier (vertical integration) which has a first-class engineering team with skills that are also valuable to the acquiring company (acquisition of technology or talent).
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Locket. Yes, photosharing can still be innovated. With tens of thousands of photo apps out by now and the more innovative developers having been acquired or become unicorns, are we now past the days that solo developers could reach top ranking with a crazy innovative new app? Fortunately: those days are not quite over! Check out this great story about Matthew Ross, who built an app for his girlfriend who had to move out of town, the app allowing him to post photos on her iPhone’s home screen while she could do the same on his. Add some modern-day grass roots marketing (on TikTok, of course), and Locket, the resulting app, became a runaway hit with 2 million user signups in the first 10 days after it shipped on New Year's Day.
Albelli & Photobox. Merging. Albelli and Photobox are merging. Both companies owned by PE firms, the newly-combined entity will serve a pan-European customer base of over 7M customers, supported by 1,150 employees across the UK, Netherlands, France, Germany, Spain, Norway and Sweden. Estimated combined market value is €583M, according to one report last fall.
Bazaart. Adding video editing. A sign of the times: Bazaart adds video editing capabilities to the iOS version of its photo editing and graphic design app, following the same path taken by apps the likes of Canva, VSCO and PicsArt.
Rembrandt. The Night Watch at your fingertips. We hear it all the time: going virtual is not quite the same as doing things in-person. In 99% of the cases the connotation is: in-person trumps virtual. For the 1%-ers among us: check out this 717 gigapixel (!) image of Rembrandt’s The Night Watch in all its glorious detail, and compare it with trying to view the painting in a crowded Rijksmuseum with always somebody standing in front of the part you really wanted to inspect.
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CreativeX. AI to tackle biases. Similarly, AI-based image recognition technology increasingly is getting a bad rep. But what if you could use it to promote diversity, rather than reflect gender, race, age, or other biases in your training sets? CreativeX does just this by analyzing (the lack of) diversity in advertising, and announces a partnership with the Geena Davis Institute on Gender in Media. For example, an analysis of 3.5K image and video ads deployed in the US in 2021 found that although 55% of ads featured female characters, male characters were 1.5X more likely to be shown in professional settings than female characters.
Famous. New Shopify design platform. Famous announces Amaze Free, a design platform aimed at Shopify merchants and available in the Shopify App Store. Amaze Free offers immersive designs, animations, and transitions, enabling merchants to easily build customized landing pages in just a few clicks – no design or technical skills required.
Best,
Hans Hartman
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