Vistaprint Buys Pixartprinting For Base Purchase Price Of About 127 Mln Euros

(RTTNews) - Vistaprint N.V. (VPRT), an online provider of professional marketing products, Tuesday agreed to acquire Italy-based Pixartprinting Srl for a base purchase price of about €127 million.

Venlo, Netherlands-based Vistaprint expects the deal to be accretive to fiscal 2014 revenue and operating cash flow, but dilutive to GAAP EPS due to transaction costs and expected amortization expense.

On a non-GAAP EPS basis, which excludes amortization expense for acquisition-related intangible assets, the deal is expected to have a neutral impact in fiscal 2014.

In fiscal 2015, Vistaprint expect the deal to be dilutive to GAAP EPS, but accretive on a non-GAAP basis.

The deal will result in Vistaprint owning 97 percent of Pixartprinting, while the remainder 3 percent will be owned by Pixartprinting's founder.

As part of the deal, Vistaprint will assume 100 percent of the majority stake in Pixartprinting that is currently held by private equity firm Alcedo SGR.

The agreement also includes a sliding-scale earn-out of up to €10 million for Pixartprinting, subject to the achievement of revenue and EBITDA performance targets for calendar year 2014.

Vistaprint expects Pixartprinting will have a net debt position of €18 million at the close of the transaction.

Based in Quarto D'Altino, Veneto, Italy, Pixartprinting is a web-to-print business serving over 100,000 customers. In calendar 2013, Pixartprinting's revenue was about €56 million, reflecting year-over-year growth of more than 35 percent. Pixartprinting has about 330 employees on its rolls.