Wix buys US art community DeviantArt for $36m

Wix management Photo: PR
Wix management Photo: PR

The acquisition provides the Israeli company with opportunities for product development, brand recognition and increased traffic.

Israeli DIY website building company Wix.com Ltd. (Nasdaq: WIX) has announced that it has acquired Los Angeles based 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 Wix including product development, brand recognition and increased traffic.

Wix has acquired 100% of DeviantArt's capital stock in exchange for $36 million in cash, including $3 million of assumed liabilities. As of December 31 2016, Wix had $172 million in cash on its balance sheet. The transaction closed on February 22, 2017, and will 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.

Wix cofounder and CEO Avishai Abrahami said, "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. The DeviantArt community is talented and robust and hungry for additional product expertise. We understand their passion, share their creative vision and are excited to offer the power of the Wix platform to their millions of artists."

DeviantArt cofounder and CEO Angelo Sotira said, "We founded DeviantArt to enable the creative spirit in everyone, creating a platform dedicated to the vision and talent of the community which could be shared with the world. This combined effort with Wix creates new opportunities for innovation never before seen on the Internet and an amazing super-charged offering to our community members. We look forward to being part of the Wix team, and we are humbled by the respect and love they have shown to our community." As part of this acquisition, Sotira 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.

Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Wix management Photo: PR
Wix management Photo: PR
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