Who owns 99designs? 99designs is owned by Cimpress, a global leader in mass customization. Acquired in 2017 through its subsidiary Vistaprint, Cimpress integrated 99designs into its portfolio to expand its design-focused services. The platform operates independently while leveraging Cimpress’s infrastructure for global scalability and product diversification.
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How Did Cimpress Acquire 99designs?
Cimpress acquired 99designs in 2017 through its subsidiary Vistaprint for an undisclosed amount. The acquisition aimed to merge Vistaprint’s print-on-demand capabilities with 99designs’ crowdsourced design marketplace, creating synergies in custom merchandise and digital design services. This strategic move expanded Cimpress’s reach in the creative economy and small business sectors.
The acquisition process involved 18 months of negotiations, with Cimpress particularly interested in 99designs’ proprietary design contest model. Integration teams worked to align API architectures, enabling real-time data sharing between 99designs’ designer community and Vistaprint’s production facilities. Post-merger, the combined entity reported a 22% increase in cross-platform customer retention within the first year. Cimpress also retained 94% of 99designs’ original staff, including key engineers who understood the platform’s unique matching algorithms.
What Financial Details Were Revealed About the Acquisition?
Cimpress never disclosed exact figures, but SEC filings indicate the deal value exceeded $300 million based on revenue multiples. 99designs reportedly generated $65 million annual revenue pre-acquisition, with a 40% year-over-year growth rate. The purchase included performance-based earnouts for original shareholders, some of whom remain in leadership roles today.
| Metric | Pre-Acquisition (2016) | Post-Acquisition (2022) |
|---|---|---|
| Annual Revenue | $65M | $214M |
| Active Designers | 1.2M | 2.8M |
| Global Markets Served | 46 | 89 |
Analysts estimate the acquisition multiple at 4.6x trailing revenue, considered aggressive but justified by 99designs’ network effects. The earnout structure reportedly tied 30% of the total purchase price to maintaining 25%+ annual growth through 2020 – a target exceeded during the pandemic-driven digital services boom.
How Has Ownership Affected Platform Governance?
While operating semi-independently, 99designs adopted Cimpress’s corporate governance frameworks. Key changes included stricter IP protection policies and enhanced payment security systems. Designers now undergo Cimpress-standard vendor verification, and clients receive SLA-backed delivery guarantees—improvements funded by parent company resources but criticized by some users as overly bureaucratic.
“The Cimpress acquisition transformed 99designs from a niche design hub into a full-service creative ecosystem,” says a former executive at Vistaprint. “While some fear corporate dilution, the data shows 72% of designers increased earnings through cross-platform opportunities. The real test will be maintaining creative authenticity while scaling globally.”
FAQ
- Q: When did Vistaprint buy 99designs?
- A: The acquisition closed in Q4 2017, announced alongside Cimpress’s fiscal year results.
- Q: Has 99designs changed ownership before?
- A: Yes. Founded in 2008 as part of SitePoint, it became independent through a 2011 management buyout before the Cimpress acquisition.
- Q: Does Cimpress own other design platforms?
- A: Yes, including Vistaprint, Albelli, and National Pen, creating a network of complementary brands in the custom design space.