Business News

Shutterfly Acquires R&R Images

Friday 06. September 2013 - Acquisition Further Strengthens Premium Printing and Product Design Capabilities

Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer of high-quality personalized products and services, announced today that it has acquired R&R Images, a boutique, high variability printer focused on premium stationery printing and product design. R&R Images is privately-held and located in Phoenix, Arizona.
Initially, the acquisition will have limited impact on Shutterfly revenue, but will enhance the company’s enterprise and consumer product innovation, design and printing capabilities.
“As Shutterfly continues to grow, we are making additional strategic investments in our manufacturing footprint focused on providing our customers with innovative, high quality personalized products while efficiently scaling and managing our costs,” said Jeffrey Housenbold, president and CEO of Shutterfly. “We are excited to combine R&R Images’ product innovation and expertise in premium, flexible printingwith Shutterfly’s manufacturing scale and infrastructure to enhance our capabilities and continue delighting our enterprise clients and consumers.”
Inducement Grant Disclosure
In accordance with NASDAQ Listing Rule 5635(c)(4), Shutterfly granted an inducement grant to Rod Key, R&R Images’ founder. The inducement grant consists of a restricted stock unit award representing the right to receive up to 38,492 shares of Shutterfly’s common stock. The award will vest over three years, with 33 percent of the underlying shares vesting on each of the first, second, and third anniversaries of the initial August 29, 2013 grant date. The grant is being made as an inducementmaterial to Mr. Key’s acceptance of employment with Shutterfly, in accordance with NASDAQ Listing Rule 5635(c)(4). Vesting of the award is subject to Mr. Key’s continuous service through each vesting date