Silver Spring, Md. – Vistaprint, a Netherlands-based provider of digital marketing services to small businesses, said on Monday it will pay $117.5 million to acquire Silver Spring, Md.-based Webs Inc., a developer of online tools designed to help small businesses create their own websites.
Under the deal, expected to close within a month, Vistaprint will pay $100 million in cash, as well as $17.5 million in restricted shares. Webs, which is backed by Novak Biddle Venture Partners and Columbia Capital, has served more than 40 million clients since its inception in 2001, and currently counts over 100,000 paying subscribers for its premium services.
The company, which has 50 full-time employees, expects to generate $9 million in revenue this year.
“They are serving millions of users who are exactly the types of micro businesses that Vistaprint targets,” said Vistaprint chief executive officer Robert Keane. Vistaprint is best known for its offers of free business cards, while Webs has made its name on free website and Facebook Page offerings.
“Our companies share a common vision for the future of micro business marketing, and bring complementary products and competencies to the table,” said Webs chief executive officer Haroon Mokhtarzada.
This article was also published in Potomac Tech Wire.
Press release – http://tinyurl.com/7yke6db