Hewlett-Packard lets Snapfish get away in a deal with District Photo
April 21, 2015 11:55 AM
(Bloomberg)—Hewlett-Packard Co. said it would sell its Snapfish photo-sharing site to District Photo, part of the computer maker’s plan to refocus operations as it splits in two.
Snapfish works with retailers to help consumers store, share and print photos online. District Photo, which is based in Beltsville, Md., handles digital printing for business and other customers. Terms of the deal, which was announced Tuesday, weren’t disclosed.
Meg Whitman, Hewlett-Packard’s chief executive officer, told shareholders last month that the Palo Alto, Calif.-based company was on track to divide around Nov. 1 to become more responsive to corporate customers. One company, HP Enterprise, will focus on supplying businesses with software, services and hardware. The other, HP Inc., will sell personal computers and printers to businesses and consumers.
Snapfish was acquired by Hewlett-Packard for an undisclosed amount in 2005. Silver Lake Management LLC last year shelved an attempt to acquire and combine the unit with the Shutterfly Inc. photo-sharing site, No. 50 in the Internet Retailer 2015 Top 500 Guide, a person with knowledge of the matter said.
After Snapfish is sold, it will continue to use Hewlett-Packard printing services, the company said. Its PCs will still include the HP Connected Photo application developed by Snapfish.
HP shares fell less than 1% to $33.12 at 10:15 a.m. New York time. They were down 17% this year through Monday, while the S&P 500 information-technology index rose 1.8%.