CafePress Stock Rockets Higher on Snapfish Takeover

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CafePress stock is on the rise Friday following news that Snapfish is acquiring it.

The deal will have Snapfish making a tender offer for all outstanding shares of CafePress (NASDAQ:PRSS) stock. The company doesn’t say how much it plans to offer for each share of CafePress stock. A subsidiary of Snapfish will be making the tender offer.

Snapfish will need to acquire a majority of CafePress stock to complete its acquisition of the company. That does’t look like it’s going to be a problem. Support Agreements sent to the company by shareholders, directors and management already counts for 51% of CafePress stock.

Snapfish notes that the benefits of the deal is that it will increase the business of both it and CafePress. This includes giving Snapfish a larger collection of products to offer. It will also give CafePress access to more manufacturing, marketing, and merchandising capabilities.

“Today marks a critical turning point in our pursuit to return CafePress to its market leading position in the personalized and expressive gift category,” Fred Durham, founder and CEO of CafePress, said in a statement. “We are excited about the opportunity to accelerate growth by leveraging our content portfolio across Snapfish’s distribution channels.”

Snapfish says that it will still need to complete all customary closing conditions before it can complete its deal with CafePress. This includes obtaining a majority of CafePress stock in the tender offer. If all goes well, the two companies are expecting the deal to close in early November.

PRSS stock was up 12% as of noon Friday, but is down 30% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/09/cafepress-stock-rockets-on-snapfish-deal/.

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