Tinybeans to acquire Qeepsake for USD $2.7m, doubling subscribers
Tinybeans has entered a binding agreement to acquire the assets of US-based Qeepsake, a digital memory and family journaling platform, in an all-scrip transaction valued at USD $2.7 million.
Subscriber boost
The acquisition will add approximately 49,000 paid subscribers to Tinybeans on completion, bringing the company's expected total post-integration paid subscriber base to around 90,000. This represents an increase of about 80% compared to Tinybeans' result for the 2025 financial year.
The transaction, completed with no cash outlay, is priced at 0.66 times Qeepsake's 2025 financial year revenue. This effective subscriber acquisition cost is significantly lower than Tinybeans' organic costs for acquiring new subscribers through marketing efforts.
Combined pro-forma revenue for the 2025 financial year for Tinybeans and Qeepsake is projected to reach USD $8.9 million, an uplift of 85% compared to Tinybeans' standalone 2025 result.
Product and financial integration
Tinybeans intends to integrate Qeepsake's journaling features into its photo-sharing platform, broadening the product's appeal and unlocking new monetisation opportunities across a larger and more engaged user base. The company plans to migrate Qeepsake subscribers into the Tinybeans platform over the 2026 financial year, targeting retention of approximately 40,000 highly engaged subscribers from the Qeepsake base.
The company expects the transaction to accelerate its path to EBITDA profitability after integration. The anticipated cost discipline, integration synergies, and scalability of the subscription business model are highlighted as drivers for improved financial performance.
Market position and sector focus
The acquisition is described as a strategic move to reinforce Tinybeans' market position in the privacy-first parenting and family memory sector, with an emphasis on expanding in North America. The integration of Qeepsake's journaling tools is expected to support product development for a premium global offering for families, combining photo-sharing and journaling capabilities.
Quotes from leadership
"This is a transformational step for Tinybeans. The Acquisition of Qeepsake nearly doubles our scale, strengthens our US presence and accelerates our path to profitability - all in a highly capital-efficient way. The transaction delivers substantial growth without the need for cash outlay and reflects the disciplined execution of our strategy to build a larger, more efficient subscription business."
James Warburton, Chair of Tinybeans, offered the above remarks regarding the acquisition.
"Qeepsake is a natural strategic fit for Tinybeans. Together, we're creating the leading privacy-first family memory platform - combining Tinybeans' photo-sharing experience with Qeepsake's journaling know-how to deliver an even richer experience for families. While we expect some natural subscriber movement during integration, which will be disciplined and focused, the scale, product fit and cost efficiency of this transaction give us confidence in delivering sustainable growth for our shareholders."
Zsofi Paterson, Managing Director and CEO of Tinybeans, discussed the complementarity of the two platforms and the outlook for the integration.
"We're delighted to see Qeepsake joining forces with Tinybeans - a company that shares our vision for helping families capture and preserve their memories in a safe, private and meaningful way. Tinybeans' platform, scale and leadership make it the ideal home for the Qeepsake community and we're confident the combined business will create even more value for families and shareholders alike."
Cliff Sirlin, Chair of Qeepsake, shared his perspective on the transition.
Transaction terms
The acquisition involves the purchase of Qeepsake's digital platform, branding, intellectual property, subscriber base, customer and commercial assets, technology and operational assets, and certain staff. Payment is structured in two stages: upfront issuance of fully paid ordinary shares in Tinybeans equivalent to USD $1.2 million, and a further USD $1.5 million in performance rights convertible to shares, subject to shareholder approval and achievement of performance milestones related to EBITDA, revenue and paid subscribers.
The Consideration Shares will be subject to a 24-month voluntary escrow period, with conversion shares under the performance rights released from escrow after 12 months. Following completion, Qeepsake is expected to hold a maximum 12.02% interest in Tinybeans.
Cliff Sirlin will join the Tinybeans Board as a Non-Executive Director, while Tracy Cho, Chief Executive Officer of Qeepsake, will become General Manager - Qeepsake within the Tinybeans executive team.
Financial impact and risk factors
Following integration, Tinybeans expects to retain around 40,000 of Qeepsake's subscribers, with a total paid subscriber base of about 90,000. The transaction's estimated acquisition cost per retained subscriber is cited at roughly USD $67, which is below Tinybeans' current organic marketing cost per similar subscriber.
Tinybeans notes potential risks related to subscriber attrition, integration execution, synergistic and product development, as well as key staff retention through the period of integration and migration. The company's modelling for the acquisition uses conservative retention assumptions to account for these risks.
Completion of the transaction is anticipated later in November 2025, subject to final procedural approvals and shareholder resolutions as outlined in the agreement.
