FTD Group, Inc. has been sold for approximately $800 million to Internet and media services provider, United Online, Inc., the company announced earlier this morning.

United Online, also operator of NetZero, Juno and Classmates.com, says the merger will provide "additional revenue streams;" "stable and recurring cash flows and significant growth opportunities;" and "expansion into an attractive market." United Online added that it would use its "marketing expertise" to attract consumers and more member florists while cross-selling to United Online's already established member base, which has similar demographics to FTD's member base.

"After spending many years marketing major retail brands in the fragrance, cosmetic and other image product industries and managing consumer retail businesses, I am especially looking forward to working with the thousands of FTD affiliated florists and the potential for developing specific programs designed to further invigorate the FTD florist channel and increase the number of orders delivered to that trade channel," says Mark R. Goldston, chairman, president and CEO of United Online, in a release.

The merger values the FTD stock at $15.08 a share and upon closing, the former FTD stockholders will own approximately 15 percent of United Online, FTD says.

"We believe joining forces with United Online, an established Internet company with a proven operating track record and considerable acquisition expertise, will best serve the interests of our stockholders," says Michael J. Soenen, FTD chairman, president and CEO, in a release. "As a significant advertiser, United Online is the ideal partner to help FTD realize greater efficiencies in media spending and customer acquisition."

--Kori Kamradt
kkamradt@safnow.org

 

Next Article