Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events

Subsequent Events

15. Subsequent Events

On May 1, 2017, we completed the acquisition of certain assets and the assumption of certain liabilities of Deny Designs, an original home décor brand and manufacturer based in Denver, Colorado, for total consideration of $12.0 million. The purchase price consists of cash of approximately $6.7 million paid at closing, approximately 215,000 shares of Leaf Group common stock valued at approximately $1.7 million issued in a private placement, and deferred consideration of $3.6 million, payable annually in three equal installments on the first through third anniversary date of the closing, subject to reduction in certain circumstances. A portion of the deferred consideration will secure post-closing indemnification obligations of the seller and/or post-closing adjustments to the purchase price. Deny Designs is an artist-driven print-on-demand home décor focused marketplace with in-house manufacturing capacity and both wholesale and direct-to-consumer channels. The business will operate as a part of our Marketplaces service offering, complementing our Society6 business. We are currently in the process of allocating the purchase price to the individual assets and liabilities acquired.