Vistaprint Completes Acquisition of Albumprinter
Wednesday, November 02, 2011
Press release from the issuing company
Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses and the home, today announced it has completed its acquisition of Albumprinter, a privately held Dutch photo book and photo product company. The purchase price was EUR 60 million, with an agreement to pay up to an additional EUR 5 million based on a performance based earn-out. The final purchase price is subject to customary, post-closing balance sheet adjustments.
This acquisition combines Vistaprint's strengths of a pan-European customer base with Albumprinter's specialized expertise and technology for the design and production of photo books. Vistaprint currently plans to promote the Albumprinter offering across the European market. The acquisition will also enable Albumprinter's customers to benefit from a much expanded product offering of personalized products that Vistaprint produces.
Ernst Teunissen, executive vice president and chief financial officer, said, "As discussed during the prepared remarks for our first quarter fiscal 2012 earnings announcement last week, we expect this acquisition to add about $37 million to $39 million of revenue for the remainder of our fiscal year ending June 30, 2012. We expect the acquisition to be dilutive to GAAP earnings per share by $0.09 to $0.11, but accretive to our non-GAAP earnings excluding acquisition-related amortization of intangible assets and share-based compensation and related expenses. Our updated guidance below adds our Albumprinter expectations to the guidance we established for our core business on October 27, 2011."
Financial Guidance as of November 1, 2011:
Based on current and anticipated levels of demand and recent foreign currency rates, the company expects the following financial results:
GAAP Diluted Earnings Per Share
Non-GAAP Adjusted Net Income Per Diluted Share
For the full fiscal year ending June 30, 2012, the company expects to make capital expenditures of approximately $60 million to $75 million. Planned capital investments are designed to support the planned growth of the business.
Our estimates for acquisition-related amortization of intangible assets are preliminary and subject to change based on the completion of purchase accounting during the second quarter ending December 31, 2011.
Vistaprint recognized a transactional currency gain related to the payment of the Euro-based Albumprinter acquisition. As standard practice, Vistaprint does not provide guidance on the anticipated other income/expense impact of currency exchange rate fluctuations, because the consolidated impact of multiple gains and losses over a fiscal year are difficult to predict. The foregoing guidance supersedes any guidance previously issued by the company. All such previous guidance should no longer be relied upon.
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