Deals

Shutterfly bolsters mobile offering, acquires Penguin Digital

Shutterfly, a website for storing and printing digital photos, is stepping up its mobile offering in a bid to stay relevant. Today, the company acquired Penguin Digital, the New York-based creator of the popular “MoPho” app.

Terms of the deal were not yet disclosed. For Shutterfly, today’s deal builds on recent acquisitions of Nexo (acquired for $15 million in 2008), TinyPrints (acquired for $300 million) and Photoccino, an Israeli photo startup it picked up in May.

In March, faltering photo giant Kodak passed off its gallery printing services to Shutterfly for $23.8 million. With the spate of acquisitions of hot mobile apps, Shutterfly is presumably hoping to avoid Kodak’s fate. Unable to adapt and survive in the digital age, Eastman Kodak Company filed for bankruptcy in January.

Shutterfly, a Silicon Valley-based company, says it will blend Penguin Digital’s technology into its own iPad, iPhone, and Android apps. Penguin Digital is best known for Mobile Photo Gallery, “MoPho” for short, an app that makes it easier to order physical copies of images from your iPhone’s photo library, and print them on mugs, canvases, T-shirts, and iPhone cases.

“The acquisition of Penguin Digital supports our mobile strategy aimed at giving consumers better ways to engage with their photos and personalize products on the go,” said Jeffrey Housenbold, president and CEO of Shutterfly in a statement. “We believe it’s important to give consumers the choice and convenience of transforming their memories into high quality products and gifts from their PC, tablet, and mobile phone.”

Penguin Digital was founded in 2010 with $1 million in seed funding from Globis Capital, among others. Founders Reuven Moskowitz and Josh Friedman and the rest of the Penguin Digital team will head up Shutterfly’s New York office.

Top Image via Shutterstock

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