Shutterfly intends to buy Eden Prairie-based Lifetouch for $825 million in cash, according to the California-based company.
Shutterfly’s board of directors and a trustee from the Lifetouch employee stock ownership plan approved the acquisition, which remains subject to closing conditions and regulatory approval. The companies expect the acquisition to close in the second quarter of this year.
“I’m excited to join the Shutterfly team,” said Michael Meek, CEO of Lifetouch in a statement.
“Shutterfly and Lifetouch have a common mission and a common culture. Similar to Shutterfly, Lifetouch has a large and loyal customer base, and a talented and dedicated team that are excited about the opportunities at the combined company. As Lifetouch continues to leverage technology to better serve our customers, Shutterfly’s capabilities across photo management, product creation, and ecommerce will accelerate this transformation.”
According to Shutterfly, Meek will join the company’s executive team and will be responsible for the Lifetouch business as well as “extending and building on their leadership position in school, preschool, church and studio photography.”
Shutterfly operates a plant in Shakopee and its headquarters are in Redwood City, California.
About 750 Lifetouch employees are based in Minnesota. The two businesses will continue to operate independently while beginning to plan for the future, said Nicole Stier, Shutterfly spokeswoman.
When asked how the acquisition would affect jobs at Lifetouch, Stier said the focus is on the acquisition now and in the near future and “thinking ahead to the areas of opportunity for both businesses – offering up Shutterfly’s cloud photo management, product breadth and product creation capabilities to Lifetouch customers, driving synergies across the manufacturing platforms and accelerating the transformation of Lifetouch’s technology platform.”