99designs Acquisition: Key Details, Impact, and What Comes Next

VistaPrint's acquisition of 99designs marks a significant move in the design and printing industry. By integrating 99designs' extensive network of freelance designers with VistaPrint's vast customer base, the deal aims to enhance service offerings for small businesses. This strategic alignment is expected to provide comprehensive design and marketing solutions, benefiting both companies and their clients.

What Is 99designs?

Founded in 2008, 99designs is a platform that connects businesses with freelance designers for various design needs. Its core services include logo design, website design, branding, packaging, and merchandise design. Unique selling points include a vetted designer community, the ability to run design contests, and a global reach connecting businesses with designers from 192 countries. The platform emphasizes custom professional design and offers tools like the Free Logomaker for ease of use.

Who Acquired 99designs?

VistaPrint India is a prominent player in the custom printing services industry. The company offers a diverse range of products, including business cards, custom clothing, stationery, marketing materials, and personalized gifts. Known for its extensive catalog, VistaPrint caters to both small and large orders, ensuring affordability and quality. The company's commitment to customer satisfaction, highlighted by policies like free replacements or full refunds, reinforces its strong market presence and influence.

When Was 99designs Acquired?

VistaPrint acquired 99designs on October 5, 2020. This acquisition occurred during a period marked by increased consolidation in the tech and design sectors, driven by a growing demand for integrated design services. The timing also coincided with the COVID-19 pandemic, which saw a surge in digital and remote work solutions, making the integration of 99designs' freelance network with VistaPrint's customer base particularly strategic for supporting small businesses.

Why Was 99designs Acquired?

• Market Expansion: The acquisition allows Vistaprint to expand its market by integrating 99designs' freelance design services with its existing printing services. This creates a comprehensive solution for small businesses, enabling them to handle both design and printing needs in one place. Additionally, Vistaprint plans to substantially expand its local workforce, further broadening its market reach.
• Technology Integration: Vistaprint benefits from 99designs' technology by incorporating its freelance design marketplace into Vistaprint's existing infrastructure. This integration will enable Vistaprint to offer a seamless experience for customers who need design services along with printing. Post-acquisition, Vistaprint plans significant investment to expand the 99designs team and accelerate technology and product development.
• Competitive Advantage: The combined resources and shared values of Vistaprint and 99designs aim to create a more valuable service than either company could offer alone. This strategic move positions Vistaprint as a more comprehensive service provider for small businesses, potentially giving it a competitive edge in the market. The merger allows Vistaprint to offer a one-stop-shop for design and printing needs, differentiating it from competitors.

Acquisition Terms

• Acquisition Price: The financial terms of the acquisition were not disclosed.
• Payment Method: The payment method used for the acquisition was not specified.
• Key Conditions or Agreements:
  • 99designs will operate as part of Vistaprint while continuing as a separate brand.
  • Patrick Llewellyn, CEO of 99designs, will report to Robert Keane, CEO of Cimpress/Vistaprint, and continue to lead 99designs.
  • Vistaprint plans significant post-acquisition investments to expand the 99designs team and accelerate technology and product development.
  • The acquisition aims to integrate 99designs' network of freelance designers with Vistaprint's customer base, creating a global platform for small businesses to access professional design services and marketing products.

Impact on 99designs

The acquisition of 99designs by Vistaprint has led to notable changes in operations and management. While 99designs continues to operate as a separate brand, it is now part of Vistaprint's broader portfolio. Patrick Llewellyn, the CEO of 99designs, remains at the helm, reporting directly to Robert Keane, CEO of Cimpress and Vistaprint. This structural alignment aims to leverage the strengths of both companies, with Vistaprint planning significant investments to expand the 99designs team and accelerate technology and product development.

In terms of product offerings, the integration has created a comprehensive platform where small businesses can access both design and printing services seamlessly. Vistaprint's customer base now benefits from 99designs' extensive network of freelance designers, enhancing the range and quality of design services available. Employee reactions have been mixed, with some expressing optimism about the expanded opportunities, while others are cautious about potential changes. Customers, particularly small business owners, have generally welcomed the enhanced service offerings, appreciating the convenience of a one-stop-shop for their design and printing needs.

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