Wix Acquires US Art Community DeviantArt for $36 Million in Cash

 

Wix team

 

Wix Ltd. has announced that it has acquired DeviantArt, one of the world’s largest online communities dedicated to artists, art enthusiasts and designers.

The acquisition represents inherent opportunities in key growth areas for the company including product development, brand recognition and increased traffic potential.

The Israeli DIY website building company has acquired 100 percent of DeviantArt’s capital stock in exchange for approximately $36 million in cash, including approximately $3 million of assumed liabilities.

As of December 31 2016, the company had $172 million in cash on its balance sheet. The transaction be recorded in Wix’s first quarter 2017 financial statements.

Wix will provide DeviantArt users easy access to powerful tools specifically designed to help emerging artists create and showcase their creativity online and build their brands. At the same time, Wix creatives and designers will have access to DeviantArt’s thriving community of tens of millions of visual artists.

DeviantArt is consistently one of the most visited websites worldwide and has grown organically for over a decade with virtually no investment in marketing or advertising. Currently, the community boasts over 325 million individual pieces of original art and more than 40 million registered members.

Wix and DeviantArt share a vision to provide designers and artists of all types a platform on which they can create, manage and showcase their work online, grow their audience and build their own global brands.

Wix will provide technology and marketing expertise to the DeviantArt universe enabling its users to further their reach and increase engagement, both online and on mobile.

“Over its 16-year history, DeviantArt has built an impressive online community that is incredibly loyal, highly engaged and regularly produces stunning art and design,” said CEO of Wix and Co-founder, Avishai Abrahami. “The DeviantArt community is talented and robust and hungry for additional product expertise.”

DeviantArt’s focus on developing and fostering online collaboration and communities will provide Wix users a platform to engage with creative designers and artists across multiple mediums. Together the companies will strive to create an innovative gallery for artists globally, mixing world class creative with unmatched opportunities for design, display and distribution.

As part of this acquisition, Angelo Sotira, Co-founder and CEO of DeviantArt, will join the Wix management team. DeviantArt will continue to foster its community from its headquarters in Los Angeles, and all of its employees will join Wix.

 

As a result of this transaction, Wix is making the following adjustments to its previous outlook for the full year 2017:

● Increasing its revenue outlook by approximately $8 million to $417 – $419 million

● Increasing its collections outlook by approximately $9 million to $461 – $467 million

● Investments in the platform are expected to decrease FY17 free cash flow outlook by approximately $8 million to $63 – $64 million. This estimate reflects further investment in R&D and marketing, integration costs, employee retention bonus payments and other transaction related expenses

 

 

 

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