IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) has made its first acquisition - US photo-sharing company Smilebox Inc. for $25 million, plus up to an additional $15 million in milestone payments within 14 months from the closing.
IncrediMail CEO Josef Mandelbaum said, "This acquisition is a perfect fit for our growth strategy as it extends our product portfolio and substantially increases our premium subscription base."
Smilebox was founded in 2005. It has developed an easy-to-use, downloadable desktop application that allows consumers to use personal photos and videos to construct one-of-a-kind creations, including greeting cards, invitations, slideshows, scrapbooks and photo albums.
IncrediMail expects to close the acquisition by the end of September. It expects Smilebox to generate over $15 million in sales in 2012 and add to its earnings before interest, taxes, depreciation and amortization (EBITDA) in the second half of next year. Smilebox will continue to operate from its Redmond, Washington-based offices, which currently employs 50 people, with no major changes in its organization.
IncrediMail's share price fell 4.3% on Nasdaq yesterday to $6.85, giving a market cap of $66 million, but rose 0.6% by mid-afternoon on the TASE today to NIS 24.18.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2011
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