(Reuters) - Online retailer Shutterfly Inc said on Tuesday it would buy privately-held Lifetouch for $825 million in cash, gaining access to the company’s school photography customers.
Shares of Shutterfly surged 14.7 percent to $61.82 in trading after the bell.
Lifetouch photographs more than 25 million children annually during the fall picture day tradition, serving more than 10 million households. It had revenue of about $963.9 million for the fiscal year ended June 30, 2017.
Shutterfly also reported fourth-quarter profit and sales above analysts’ estimates.
Morgan Stanley & Co. LLC is the financial adviser to Shutterfly, while BMO Capital Markets advised Lifetouch’s board.
Reporting by Munsif Vengattil and Vibhuti Sharma in Bengaluru; Editing by Anil D'Silva