Online photography retailer Shutterfly acquired school photography company Lifetouch for $825 million in cash. Morgan Stanley agented a $850 million term loan to support the acquisition.

According to a related 8-K filing, Morgan Stanley, as both administrative and collateral agent, provided a secured incremental term loan facility in an aggregate principal amount of up to $825 million. Shutterfly will use the term loan to support the Lifetouch acquisition and to refinance Lifetouch’s existing indebtedness and pay fees and expenses incurred by both the acquisition and refinancing

Provided the transaction meets the customary closing conditions and regulatory approvals, the companies anticipate closing in Q2/18. Shutterfly expects the acquisition to result in approximately $935 million of additional net revenues and approximately $100 million of additional adjusted EBITDA in the 12-month period following closing of the acquisition. The company is targeting a minimum of $450 million of adjusted EBITDA by 2020.

In the meantime, Shutterfly will temporarily suspend its share repurchase program in favor of near-term de-levering.

Morgan Stanley also acted as lead arranger and bookrunner in connection with the debt financing and served as financial advisor to Shutterfly. BMO Capital Markets acted as financial advisor to Lifetouch.