Israel’s Wix Buys DeviantArt for $36 Million, Raises Revenue Outlook

REUTERS/Baz Ratner
REUTERS/Baz Ratner

(Reuters) — Israel-based said on Thursday it acquired DeviantArt, an online community for artists and designers, for $36 million in cash and raised its revenue outlook for 2017.

Wix, which helps small businesses build and operate websites, will have access to Los Angeles-based DeviantArt’s more than 40 million registered members and over 325 million pieces of original art.

As a result of the deal, Wix raised its 2017 revenue outlook by $8 million to $417-$419 million. Investments in DeviantArt’s platform will raise headcount and decrease 2017 free cash flow by $8 million to $63-$64 million.

This is the first overseas acquisition for Wix, which saw revenue grow 48 percent in the fourth quarter of 2016 to $84.2 million as it beat expectations.

Read the rest of the story at Reuters.