Photo site Shutterfly acquires mobile app GrooveBook

Photo service Shutterfly (SFLY) has added GrooveBook to its portfolio for $14.5 million.

GrooveBook's husband-and-wife co-founders Julie and Brian Whiteman pitched their photo book service on ABC's TV series Shark Tank earlier this year.

Users select up to 100 mobile phone photos using an iPhone or Android app and GrooveBook mails them a 4.5" x 6.5" photo book monthly for $2.99.

"The acquisition of GrooveBook reflects Shutterfly Inc.'s continued commitment to offering customers dynamic mobile experiences," said Shutterfly CEO and president Jeffrey Housenbold in a statement announcing the acquisition, which was announced Monday. "By adding GrooveBook to our family of brands, we will introduce a new photo book form factor while leveraging the viral, social, and word of mouth nature of the GrooveBook mobile apps."

Becoming part of Shutterfly will allow the company to scale and "grow it into a profitable, nationally recognized brand," said Brian Whiteman.

GrooveBook gained 50,000 paid subscribers after Shark Tank's Mark Cuban and Kevin O'Leary invested $150,000 in the business. It had taken them more than a year to gain their first 35,000 subs.

"This is a great moment in Shark Tank history, and a testament to the message at the heart of the show: the American Dream is alive and well," said Kevin O'Leary, founder of O'Leary Financial and the Whitemans' mentor on Shark Tank. "I've worked closely mentoring Brian and Julie, the founders of GrooveBook, and I've always believed in their potential as entrepreneurs to grow their business into something remarkable. Today they have done just that - and thanks to their hard work and great innovation, they are going to wake up financially independent and free."

GrooveBook is an iPhone and Android app and subscription service that prints up to 100 mobile phone photos in a 4.5" x 6.5" GrooveBook and mails it to customers every month for $2.99. GrooveBook was featured on the television program, Shark Tank, and worked with investor and mentor, Kevin O'Leary.