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Shutterfly Inc. Acquires GrooveBook

Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer of high-quality personalized products and services, announced today that it has acquired GrooveBook, a mobile photo book app subscription service that sends customers a keepsake book of their mobile phone photos each month, for $14.5 Million, which includes an upfront purchase amount and a future performance-based earn-out.

“The acquisition of GrooveBook reflects Shutterfly Inc.’s continued commitment to offering customers dynamic mobile experiences,” said Jeffrey Housenbold, president and CEO of Shutterfly Inc. “By adding GrooveBook to our family of brands, we will introduce a new photo book form factor while leveraging the viral, social, and word of mouth nature of the GrooveBook mobile apps.”

"This is a great moment in Shark Tank history, and a testament to the message at the heart of the show: the American Dream is alive and well," said Kevin O’Leary, founder of O’Leary Financial and star of ABC's Shark Tank. "I've worked closely mentoring Brian and Julie, the founders of GrooveBook, and I've always believed in their potential as entrepreneurs to grow their business into something remarkable. Today they have done just that - and thanks to their hard work and great innovation, they are going to wake up financially independent and free."

“We are thrilled to bring GrooveBook to the Shutterfly Inc. family of brands,” said Brian Whiteman, founder of GrooveBook. “Shutterfly is the industry leader and by leveraging their technology platform, expansive manufacturing footprint, and expertise in quickly scaling brands, we will be able to scale GrooveBook operations and grow it into a profitable, nationally recognized brand.”

GrooveBook is an iPhone and Android app and subscription service that prints up to 100 mobile phone photos in a 4.5" x 6.5" GrooveBook and mails it to customers every month for $2.99. GrooveBook was featured on the television program, Shark Tank, and worked with investor and mentor, Kevin O’Leary.

About Shutterfly, Inc.

Shutterfly, Inc. is the leading manufacturer and digital retailer of high-quality personalized products and services offered through a family of lifestyle brands. Founded in 1999, the Shutterfly, Inc. family of brands includes Shutterfly, where your photos come to life in photo books, cards and gifts; Tiny Prints, premium cards and stationery for all life’s occasions; Wedding Paper Divas, wedding invitations and stationery for every step of the planning process; Treat, personalized greeting cards that really stand out; MyPublisher, one of the pioneers in the photo book industry and creator of easy-to-use photo book-making software; ThisLife, a private, cloud-based solution that makes it easy for consumers to find, share and enjoy their photos and videos, all in one place; BorrowLenses, the premier online marketplace for photographic and video equipment rentals; and GrooveBook, a mobile phone app and monthly photo book service. For more information about Shutterfly, Inc. (NASDAQ:SFLY), visit www.shutterflyinc.com.

Shutterfly, Inc.
Investors
Michael Look, 650-610-5910
mlook@shutterfly.com
or
Media
Gretchen Sloan, 650-610-5276
gsloan@shutterfly.com