Monday, December 15, 2014
SAN JOSE, Calif. — Dec. 11, 2014 — Adobe (Nasdaq:ADBE) today announced that it has entered into a definitive agreement to acquire privately-held Fotolia, a leading marketplace for royalty-free photos, images, graphics and HD video, for approximately $800 million in cash. Fotolia will be integrated into Adobe Creative Cloud, providing current and future Creative Cloud members with the ability to access and purchase over 34 million images and videos, significantly simplifying and accelerating the design process. The acquisition of Fotolia cements Creative Cloud’s role as a vibrant marketplace for creatives to buy and sell assets and services as well as showcase their talent to a worldwide audience. Adobe also plans to continue to operate Fotolia as a standalone stock service, accessible to anyone.
“The acquisition of Fotolia will reinforce Creative Cloud’s role as the preeminent destination for creatives,” said David Wadhwani, senior vice president, Digital Media, Adobe. “Creative Cloud is becoming the go-to marketplace for the creative community to access images, videos, fonts and creative talent, through critical creative services like Fotolia and our new Creative Talent Search capabilities.”
With over 3.4 million members, Adobe Creative Cloud features the world’s leading desktop tools, an array of complementary mobile apps, training content, creative assets and services and ready access to a dynamic community. Creative Cloud is transforming how creatives find inspiration and deliver their best work -- and the value of Creative Cloud is increasing all the time through product updates and new capabilities like Creative Talent Search. Following the completion of the acquisition, Adobe expects to integrate the delivery and purchase of stock assets into Creative Cloud.
“Becoming part of the Adobe family is a dream come true for the Fotolia team and will accelerate our vision to become the best place for artists to build a business and the ultimate destination for designers to find stunning creative work,” said Oleg Tscheltzoff, founder and CEO of Fotolia.
Founded in 2004, with offices in New York, Paris and Berlin, privately-held Fotolia is owned by Kohlberg Kravis Roberts & Co. L.P., TA Associates and management. Fotolia currently operates in 23 countries and has websites in 14 languages.
The transaction, which is expected to close in the second half of Adobe’s fiscal Q1 2015, is subject to certain regulatory approvals and customary closing conditions. The potential financial impact to Adobe of this transaction is not reflected in financial targets Adobe has previously provided, or new targets disclosed as part of Adobe's financial results, released on December 11, 2014. Until the transaction closes, each company will continue to operate independently. Upon close Fotolia CEO, Oleg Tscheltzoff, will continue to lead the Fotolia team as part of Adobe’s Digital Media business.
For more information on Fotolia and the creative community, see: http://blogs.adobe.com/conversations/2014/12/building-a-vibrant-marketplace-for-the-creative-community.html
Forward-Looking Statements Disclosure
This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, including risks and uncertainties related to Adobe’s ability to successfully integrate Fotolia’s stock content service into Creative Cloud. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements regarding: the ease of use of any future Adobe stock content service, the functionality of the service’s commerce system, plans for integrating the service into Creative Cloud and other anticipated benefits of the transaction to Adobe; the ability of Adobe and Fotolia to close the announced transaction; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These risks, uncertainties and other factors, and the general risks associated with Adobe’s business, could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to Adobe and are qualified in their entirety by this cautionary statement. For a discussion of these and other risks and uncertainties, individuals should refer to Adobe's SEC filings. Adobe does not assume any obligation to update any such forward-looking statements or other statements included in this press.
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