Photo and image editing app PicsArt is buying video effects company D’efekt, the companies announced Wednesday.
D’efekt marks PicsArt’s first acquisition as the company looks to expand its video and AR offerings. The company had been on PicsArt’s radar for some time, which was drawn to its team of three, PicsArt CEO Hovhannes Avoyan said in an interview with Crunchbase News.
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“It’s not only the talent, but they built very good technologies which makes sense to incorporate into PicsArt and also use their app as a separate app,” Avoyan said.
The company has $54 million in total funding from backers including Insight Partners and Sequoia Capital, according to the company. The company declined to disclose D’efekt’s acquisition price
PicsArt users utilize the app to edit photos, images and video. D’efekt focuses on video editing–allowing users to apply motion effects to videos. With D’efekt in its portfolio, PicsArt wants to target users of apps like TikTok, YouTube and Instagram to help them create more entertaining videos, Avoyan said.
The company plans to keep the PicsArt and D’efekt apps separate, but will include some technology integrations into the PicsArt app. D’efekt will be rebranded to include PicsArt’s name in the coming weeks, according to the company.
D’efekt was PicsArt’s first acquisition, and the company would like to buy other apps with high growth potential and great talent and tech, Avoyan said. PicsArt has close to 600 employees, and all three members of the D’efekt team will be joining the company.
PicsArt closed its Series B in January 2020, per the company.
Illustration: Li-Anne Dias
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