Redwood City, CA—Shutterfly, Inc. acquired R and 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 its 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 and R Images’ product innovation and expertise in premium, flexible printing with Shutterfly’s manufacturing scale and infrastructure to enhance our capabilities and continue delighting our enterprise clients and consumers.”
In accordance with NASDAQ rules, Shutterfly granted an inducement grant to Rod Key, R and 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% 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 inducement material to Key’s acceptance of employment with Shutterfly. Vesting of the award is subject to his continuous service through each vesting date. shutterflyinc.com