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Last Update: 19-Dec-11 11:37 ET
Vistaprint Trading Sharply Lower Following News That It Will Acquire Webs, Inc
Vistaprint (VPRT $30.38 -2.36) is down over 7% after the company announced that it will acquire Webs Inc. for $117.5 million.
More specifically, earlier this morning, the company annnounced that it will acquire Webs for ~$100.0 million in cash and $17.5 million in restricted shares subject to continued employment of the founding shareholders. In addition, Webs management and employees will join the Vistaprint team, and will continue to operate under the Webs brands. The transaction is expected to be completed within one month, and the consideration is subject to customary closing adjustments.
Vistaprint expects this transaction to be dilutive to its GAAP earnings per share through fiscal 2014 due to the expectation that we will incur significant costs for amortization of acquisition-related intangible assets, tax charges related to the alignment of intellectual property with global operations, and the treatment of the restricted share portion of the consideration as compensation expense.
Vistaprint expects this transaction to be dilutive to non-GAAP earnings per share in fiscal 2012 and 2013, but accretive to non-GAAP earnings per share in fiscal 2014. Non-GAAP earnings per share excludes share based compensation, amortization of acquisition-related intangibles, and tax charges related to the alignment of intellectual property with global operations. Vistaprint will provide updated detailed guidance with its second quarter fiscal 2012 earnings announcement in January, subject to the transaction close.
More specifically, earlier this morning, the company annnounced that it will acquire Webs for ~$100.0 million in cash and $17.5 million in restricted shares subject to continued employment of the founding shareholders. In addition, Webs management and employees will join the Vistaprint team, and will continue to operate under the Webs brands. The transaction is expected to be completed within one month, and the consideration is subject to customary closing adjustments.
Vistaprint expects this transaction to be dilutive to its GAAP earnings per share through fiscal 2014 due to the expectation that we will incur significant costs for amortization of acquisition-related intangible assets, tax charges related to the alignment of intellectual property with global operations, and the treatment of the restricted share portion of the consideration as compensation expense.
Vistaprint expects this transaction to be dilutive to non-GAAP earnings per share in fiscal 2012 and 2013, but accretive to non-GAAP earnings per share in fiscal 2014. Non-GAAP earnings per share excludes share based compensation, amortization of acquisition-related intangibles, and tax charges related to the alignment of intellectual property with global operations. Vistaprint will provide updated detailed guidance with its second quarter fiscal 2012 earnings announcement in January, subject to the transaction close.
