Vistaprint Agrees to Acquire Webs Inc. for $117.5 Million
VENLO, THE NETHERLANDS/SILVER SPRING, MD—Dec. 19, 2011—Vistaprint N.V. and Webs Inc., the do-it-yourself suite of Websites, Facebook pages and mobile presence solutions for small businesses, announced the companies have entered into a definitive agreement in which Vistaprint will acquire Webs for $117.5 million payable at closing. The company‘s revenues for the calendar year 2011 are forecast to be approximately $9 million.
Webs has served more than 40 million customers globally since its inception in 2001, with millions of active users and 100,000+ paying subscribers. More than 20,000 new users register daily for Webs’ suite of products. The company currently monetizes its offerings primarily by providing premium products for which customers pay subscription charges. Webs is based in Maryland and employs approximately 50 full-time employees.
“Webs’ suite of products delivers incredible value to micro businesses, helping them to look professional online in order to grow their business,” said Robert Keane, CEO of Vistaprint. “Vistaprint is already successfully delivering digital marketing services to our customer base, with hundreds of thousands of active registered customers and over $50 million in digital subscription revenues last fiscal year. Webs complements this success with a business model based primarily on free products that has achieved impressive customer reach. They are serving millions of users who are exactly the types of micro businesses that Vistaprint targets.
“The value of this transaction lies primarily in three areas: an increased ability to serve customers via the integration of physical and digital small business identity and marketing, the addition of impressive talent who have an innovative and customer-centric approach to product development, and plans to monetize our mutual customer bases over the long-term via the sale of physical products and premium digital marketing subscriptions,” Keane added.
Vistaprint has been at the forefront of providing affordable, customized identity and marketing products to micro businesses for over a decade and its iconic free business card offer has been instrumental in driving its growth. Webs’ free website and free custom Facebook Page offerings have created a similar customer acquisition dynamic in digital marketing services.