Shutterfly buying custom fabric maker in $225M deal

A Durham, North Carolina-based maker of custom fabrics is being acquired by a major online retailer. Spoonflower is being sold to California-based Shutterfly in a $225 million deal, the companies announced Monday. The transaction, which is expected to be complete in the third quarter, will allow Shutterfly to expand its reach beyond photo sharing. Spoonflower connects the design community and offers an assortment of wallpaper, linen, home decor and more. Shutterfly has 21 million users but seeks…