Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading provider of
typefaces, technology and expertise for creative applications and
consumer devices, today announced it has acquired FontShop International
GmbH of Berlin, Germany, and its U.S. subsidiary, FontShop International
Inc., based in San Francisco. The transaction also includes the
FontFont® typeface library, FontShop AG of Berlin, the largest
distributor of the library, and 13 typeface families principally
designed by renowned typeface designer and co-founder of FontShop, Erik
Spiekermann. Many of Spiekermann's designs, such as the FF® Meta®
typeface family, are used extensively by brands and publications across
With the acquisition of FontShop, Monotype expects to grow its customer
base, expand its typeface IP and provide additional value to creative
markets, particularly in Germany, which is widely recognized as one of
the world's strongest regions in design. Monotype's global reach,
financial strength and passion for type, combined with FontShop's
complementary typeface expertise, industry relationships and premier
typeface collection, is expected to strengthen Monotype's ability to
serve global markets and deliver high-quality, branded experiences
across every screen, platform or media property.
"As a company dedicated to type, we're excited about the addition of
FontShop, another company with design and type in their DNA," said Doug
Shaw, president and CEO of Monotype. "FontShop's strong relationships
with typeface designers, acute knowledge of the creative professional
community, high-quality IP, strong e-commerce business and highly
regarded TYPO events, will add immediate value to our business and help
us continue on our mission of being the first place to turn for
typefaces, technology and expertise."
With more than 2,500 typefaces, FontShop's FontFont library has a
reputation of being one of the most prestigious type collections in the
world, representing contemporary design that is viewed by the industry
as original and on trend, promoting creativity, playfulness, ease-of-use
and high quality. FontShop's annual TYPO conferences are held in Europe
and the U.S., and bring together industry luminaries and professionals
who present and share insights on typography, design and visual
communication. Monotype intends to continue the TYPO events.
"After 25 years of fruitful cooperation and partnership, I am really
looking forward to the collective expertise that we'll be able to
deliver to the market as FontShop becomes a part of Monotype," said
Petra Weitz, general manager of Monotype Berlin and former CEO of
FontShop. "We know each other's strengths and together we can better
serve the type and design community in ways that we weren't able to do
as single, standalone organizations. I am excited about the
possibilities moving forward."
Erik Spiekermann, typeface designer and co-founder of FontShop said, "As
a typeface designer who cares deeply about the industry in which I work,
I have watched Monotype not merely survive, but grow and prosper. They
have become respected experts in the business and the technology of
type. Having my typefaces become part of the Monotype foundry will make
sure that they, as well as the other FontFonts, will benefit from
Monotype's strengths. The industry-at-large will be stronger once
FontShop adds its creative prowess to Monotype's business."
Transaction detailsThe deal is structured as three
transactions with an aggregate cash purchase price of approximately $13
million. Monotype will acquire FontShop's annualized revenue stream of
approximately $9 million, which should generate approximately $1.5
million in annualized net adjusted EBITDA. Transaction and integration
costs of $3 million are expected to be incurred in the first year
subsequent to the transaction date.
Forward-looking statementsThis press release may contain
forward-looking statements, including those related to expected growth
in Monotype's customer base, expansion of its font offerings and the
expected financial impact of the acquisition. These forward-looking
statements involve risks and uncertainties that could cause the
company's actual results to differ materially. Factors that might cause
or contribute to such differences include, but are not limited to: risks
associated with changes in the economic climate, risks associated with
the company's ability to integrate the products and services, and risks
associated with the company's ability to integrate the acquisition.
Additional disclosure regarding these and other risks faced by the
company is available in the company's public filings with the Securities
and Exchange Commission, includin the risk factors included in the
company's Annual Report on Form 10-K for the year ended Dec. 31, 2013
and subsequent filings. The financial information set forth in this
press release reflects estimates based on information available at this
time. While Monotype may elect to update forward-looking statements at
some point in the future, the company specifically disclaims any
obligation to do so, even if an estimate changes.
About MonotypeMonotype is a leading global provider of
typefaces, technology and expertise that enable the best user experience
and ensure brand integrity. Headquartered in Woburn, Mass., Monotype
provides customers worldwide with typeface solutions for a broad range
of creative applications and consumer devices. The company's libraries
and e-commerce sites are home to many of the most widely used typefaces
- including the Helvetica®,
Frutiger® and Univers®
families - as well as the next generation of type designs. Further
information is available at www.monotype.com.
Follow Monotype on Twitter, Instagram,
and Monotype's Type Case
Monotype, Helvetica, Frutiger and Ascender are trademarks of Monotype
Imaging Inc. registered in the U.S. Patent and Trademark Office and may
be registered in certain jurisdictions. Linotype and Univers are
trademarks of Monotype GmbH registered in the U.S. Patent and Trademark
Office and may be registered in certain jurisdictions. ITC is a
trademark of Monotype ITC Inc. registered in the U.S. Patent and
Trademark Office and may be registered in certain jurisdictions.
Bitstream a trademark of MyFonts Inc. registered in the U.S. Patent and
Trademark Office and may be registered in certain jurisdictions.
Ascender is a trademark of Monotype Imaging Inc. FontShop, FontFont, FF,
Meta, FF DIN and FF Scala are registered trademarks of FontShop
International GmbH. All other trademarks are the property of their
respective owners. © 2014 Monotype Imaging Inc. All rights reserved.
Monotype Acquisition of FontShop
FREQUENTLY ASKED QUESTIONS
About the acquisition
1. What is FontShop?FontShop is a leading provider
of typefaces based in Berlin, Germany, with an office in San Francisco.
Formed in 1990 as a place where "type was made for designers by
designers," FontShop has earned a reputation as a respected authority on
type and design. FontShop is the brand behind the FontFont® collection,
home to some of the world's most widely used branding typefaces,
including the FF® Meta®, FF DIN® and FF Scala® designs. FontShop is also
the founding brand of the international TYPO events, recognized for
their high-quality discussions on typography, design and visual
2. Why did Monotype acquire FontShop?Monotype is a
leading, global provider of typefaces, technology and expertise for
creative applications and consumer devices. The addition of FontShop
provides Monotype with the opportunity to grow its customer base, expand
its IP and provide additional value to creative professionals,
particularly in Germany, one of the world's strongest regions in design.
Monotype believes that its global reach, financial strength and passion
for type, combined with FontShop's complementary typeface expertise,
well established industry relationships, and premier typeface
collection, will position Monotype to better serve its markets.
The company has had a long-standing relationship with FontShop and
recognizes the value of its contributions to the typographic and design
communities. Monotype believes the acquisition will enable it to move
forward in a way that will allow the FontFont library to continue to
grow and thrive - and benefit the type and design communities.
The company intends to integrate programs such as FontShop's ongoing
TYPO events - programs that reflect FontShop's unique value and
contribution to creative communities. These events serve as a foundation
of creativity and are complementary to Monotype's overarching focus on
typefaces, technology and expertise.
3. What are the components of the acquisition?Monotype
has acquired Berlin-based FontShop International GmbH, which includes
its wholly owned subsidiary, FontShop International Inc., based in San
Francisco. In addition, the transaction comprises three other
components: FontShop's FontFont library, FontShop AG of Berlin (the
largest distributor of the library), and 13 typeface families
principally designed by Erik Spiekermann - 12 of which are from the
FontFont library and one from the FontShop AG collection. A wide range
of brands and publications across the globe have used Spiekermann's
FontFont designs including Infiniti and Mozilla, among others.
4. What were the financial terms of the transaction?The
deal is structured as three transactions with an aggregate cash purchase
price of approximately $13 million. Monotype will acquire FontShop's
annualized revenue stream of approximately $9 million, which should
generate approximately $1.5 million in annualized net adjusted EBITDA.
Transaction and integration costs of $3 million are expected to be
incurred the first year subsequent to the transaction date.
5. When did the acquisition close?The acquisition
closed on July 14, 2014.
6. Who are FontShop's customers?FontShop's customers
are primarily creative professionals working in a variety of industries
7. How are customers expected to benefit from the acquisition?With
the addition of FontShop's offerings and expertise, Monotype believes
that its customers will ultimately benefit with more and better choices.
For example, new typefaces are expected to be added to the FontFont
library, and the company intends to expand existing typeface families
and extend availability and licensing options for a wide range of
environments from screen to print. The company aims to integrate
FontFont offerings in a way that enables brands to better ensure brand
expression across today's digital landscape. Monotype also intends to
preserve and extend the designer and customer-oriented focus that's been
a hallmark of FontShop's business.
Strategy and integration
8. What will happen to the FontShop and FontFont brands?Although
the FontShop corporate brand will be retired, Monotype expects to
continue to operate the FontShop- and FontFont-branded e-commerce sites.
The FontFont typeface collection will become part of the Monotype®
Libraries, which already include the Monotype, Linotype®, ITC®,
Bitstream® and Ascender™ typeface collections.
9. How will FontShop be integrated into Monotype?FontShop
brings to Monotype some of the world's most experienced and talented
type professionals. The team is expected to positively impact Monotype
in a number of ways, adding strength and breadth in areas such as
typeface design, language extension, font technology, e-commerce,
marketing, sales, customer support and designer relations. FontShop's
FontFont collection, with more than 2,500 designs, will be integrated as
part of the Monotype Libraries, available through Monotype's sales teams
and the company's e-commerce sites, which include MyFonts, Fonts.com,
Linotype.com, and now FontShop.com and FontFont.com. Moving forward,
Monotype expects to add new fonts to the FontFont collection, enhance
and extend existing designs, add new licensing options and bring more
flexibility for use in a variety of publishing, Web and display
10. What will happen with the TYPO conferences?FontShop's
TYPO conferences (held in Berlin, London and San Francisco) have served
as a platform for industry professionals to present and share knowledge
on typography, design and visual communication. These events have also
inspired students, emerging designers and future influencers of the
typographic and design communities. Moving forward, Monotype intends to
continue with TYPO conferences.
11. How will Erik Spiekermann work with Monotype?Erik
Spiekermann, co-founder of FontShop International and principal designer
of 13 typeface families that are part of the acquisition, is a respected
authority on type and design, as well as one of the most well known
personalities in the industry. Spiekermann is expected to assume a
consultative role for Monotype to help promote various type- and
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