Redbubble acquires US rival for $57.7 million
Redbubble has announced its acquisition of US-based rival, TeePublic, for US$41 million ($57.7 million).
Much like Redbubble, TeePublic is a global online marketplace that enables artists to sell their designs on 45 products, produced and fulfilled by a third-party supplier network.
“TeePublic is a very attractive strategic fit for Redbubble and we see tremendous potential in the combination of the businesses,” Redbubble chief executive and managing director Barry Newstead said.
“The opportunity to serve our artists and customers alongside TeePublic to generate even more momentum in our combined businesses is compelling. This acquisition enables us to accelerate our marketplace flywheel together and emerge as the platform with scale to disrupt mainstream retail commerce.”
Redbubble plans to maintain and grow the business as part of a multi-brand strategy, with TeePublic co-founder and chief operating officer Adam Schwartz to continue running the business.
Schwartz noted that the TeePublic team was excited to join Redbubble at an important stage of growth for both companies.
“Redbubble’s experiences in growing its own business and developing its technology platform are a great fit for supporting TeePublic on the next steps in our journey,” Schwartz said.
TeePublic’s co-founder and current chief executive Josh Abramson will remain with the business until the end of December to enable a smooth transition to Schwartz and the Redbubble legal team. A possible ongoing role in the business will be decided in January.
The acquisition is expected to be completed in early November.
Redbubble saw revenue increase 31.3 per cent on a constant currency basis to $59.6 million in the first quarter of FY19.
Gross profit increased 33.6 per cent on a constant currency basis to $18 million, with mobile sales increasing over 60 per cent year over year.