Greeting cards manufacturer American Greetings, through its wholly owned subsidiary, has agreed to acquire online publishing company PhotoWorksfor about $26.5m in cash for expanding its presence in the online social expression industry.
American Greetings said that it would acquire all outstanding common shares of PhotoWorks at a price of 59.5 cents per share. It also added that the shareholders owning approximately 45% of PhotoWorks’ shares have already agreed to tender their shares in the offer.
Formerly known as Seattle Film Works, PhotoWorks is an online photo sharing and personal publishing company that allows consumers to use their digital images to create photo personalized products like greeting cards, calendars and photo books.
Zev Weiss, chief executive at American Greetings said: The acquisition of PhotoWorks positions us for a comprehensive photo strategy, bringing together both digital and physical products. We are taking advantage of the opportunity to establish a leadership position in this growing channel of the social expression industry.
American Greetings said that it expects to launch the tender offer shortly and complete the merger in late January 2008.
In August 2007, the company launched a new mobile e-card service that allows consumers to send a collection of designed e-cards through cell phone to recipients on major US wireless carriers.
Source: ComputerWire daily updates