Printful CEO Alex Saltonstall and Printify CEO Anastasija Oleinika told LETA that the two companies are merging as equal partners rather than one taking over the other.
Saltonstall said that all shareholders remain with the company and all the key institutional investors remain involved.
Neither Saltonstall nor Oleinika revealed the terms of the deal and related financial matters.
The companies' representatives said that the activities aimed at mutual integration will start after the completion of the transaction. Until then, the two companies will operate independently.
We’re beyond excited to share that @printify and @printful are merging! We’re coming together to help millions of you build the businesses and brands of your dreams.
— Printify (@printify) November 5, 2024
Why are we so excited? Well, because you get:
🌍 The best of both! – Our extensive network of 85+ Print… pic.twitter.com/jWlJlDGM1u
Both companies have received shareholder support as well as approval from the supervisory authorities. Oleinika said that "the place where we met the performance thresholds was in the US and there we met all reporting requirements to the US regulator". The companies did not need clearance from the Latvian Competition Council for the transaction in Latvia.
Both companies will maintain their current offices and production facilities in Riga.
The merged company will continue to work with both brands and both print-on-demand platforms, so there will be no technical changes for customers, but over time a broader range of services will become available.
Asked if there were any redundancies planned, Oleinika stressed that any merger means that the new company has to consider how to structure its operations, but the companies are not yet at that stage of the process as the merger will be finalized in the coming weeks.
The composition of the management team of the merged company is also expected to be announced in a few weeks, once the transaction is finalized.
By integrating technology and resources as equal partners, the aim is to create a business with a broader product range, geographical coverage and customized production solutions.
The companies said that this step will open new perspectives for faster growth of both companies, providing more opportunities for customers to develop their online business on a global scale. The merged company will also contribute to the Latvian economy and strengthen Riga as a strategic location for business, innovation and technology investment.
The co-founders of both companies see the merger as the next logical step in their development. Lauris Liberts, co-founder of Printful, believes that the merger of these two fast-growing manufacturing outsourcing companies will strengthen their leading position in the technology sector.
Printify founder Janis Berdigans said the company has always been focused on developing Printify's full potential and Printful is the ideal partner to help achieve this goal.
As reported, The Wall Street Journal reported in May 2021 that Printful had raised USD 130 million (EUR 106.6) from private investment firm Bregal Sagemount, becoming the first Latvian 'unicorn' or a startup with a valuation of USD 1 billion or more.
Printful Latvia, posted a turnover of EUR 83.715 million for 2023, which is 6.1 percent more than a year earlier, while the company's profit increased by 5.5 percent to EUR 6.487 million, according to Firmas.lv. Printful Latvia is a print and sewing outsourcing company that produces and delivers orders on behalf of online shops. Printful Latvia was registered in February 2017 with a share capital of EUR 350,000. The beneficial owners of the company are Inga Liberte, Lauris Liberts and Agris Tamanis.
Printify is a print-on-demand platform, linking sellers and providers of printing services. The company's main market is the US, but its headquarters are located in Riga.
In 2023, Printify Development turned over EUR 29.593 million, an increase of 11.2 percent against a year before, and made a profit of EUR 1.125 million, down 32.7 percent year-on-year. Printify Development was registered in 2015 and has a share capital of EUR 2,800. The company's sole owner is US-registered Printify Inc, but Janis Berdigans is the beneficial owner.
