TEL AVIV (Reuters) - Israel-based Wix.com (WIX.O) 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.
The company has over 100 million registered users. As of Dec. 31, Wix had $172 million in cash.
Last week Wix President Nir Zohar told Reuters that the company is pursuing a strategy of courting paid subscribers by developing products for niche users such as photographers and musicians.
DeviantArt will maintain its own brand as Wix helps it grow as a platform for artists to showcase their work, the companies said in a statement.
As part of the deal, DeviantArt co-founder and Chief Executive Angelo Sotira will join the Wix management team.
(Reporting by Yuval Ben-David; Editing by Tova Cohen)