After Eastman Kodak and FujiFilm, ThisLife - a complete
cloud-based solution for protecting, organizing and sharing
photos and videos - has joined California-based personalized
photo services company
) photo storage and sharing arena.
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Per the deal, Shutterfly will layer ThisLife's technology into
the Shutterfly platform. The collaboration of Shutterfly and
ThisLife will strengthen the former's photo storage and sharing
capabilities as well as enable the creation of products across
the web and mobile efficiently.
With the capacity of storing 18 billion images, the customers
will find it easier to store their photos at one place. Moreover,
they will be able to access their photos irrespective of their
location - from platforms such as
) and Picasa as well as from their mobile phones.
While being more GenNext technology-driven, ThisLife operates in
the same vertical as Shutterfly. We believe this specific
attribute made it a lucrative acquisition target. The financial
terms of the deal were not disclosed.
This latest deal follows Shutterfly's acquisition of FujiFilm's
photo creation and sharing website in October and Kodak Gallery's
online photo services in the middle of last year. These
deals reinforce Shutterfly's industry leading position in the
online photo business. The company will be able to leverage its
online photo sharing as well as photo book business through these
Shutterfly is focused on growing its business inorganically.
Apart from these acquisitions, Shutterfly, in the last three
years, took control of a mobile application developing company -
Penguin Digital; Israel-based photo software company - Photoccino
and a leading online social expression and publishing services
company - Tiny Prints as well as Nexo and TinyPictures. We
believe that such strategic acquisitions augur well for
Shutterfly and enable the company to enhance its portfolio and
provide next generation photo solution.
However, we believe that Shutterfly's latest purchase is
groundbreaking as it heads toward offerings based on cloud
management services. This acquisition will take Shutterfly's
infrastructure as well as services one step ahead.
Shutterfly, a Zacks Rank #2 (Buy) stock, is benefiting
considerably from its scale advantage and vertical integration.
We are also maintaining our long-term Neutral recommendation on