Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading global provider of text imaging solutions, today announced it has completed its acquisition of Bitstream Inc.’s font business in an all cash merger valued at approximately $50 million, subject to adjustments based on the closing net asset value of the company.
“This is a great day in our history,” said Doug Shaw, president and chief executive officer of Monotype Imaging. “Our mission is to be the first place to turn for typefaces, technology and expertise that enable the best user experience and ensure brand integrity regardless of device, platform or language. We’re excited to welcome Bitstream’s team of experts to Monotype Imaging – professionals who care as passionately about type as we do.”
Monotype Imaging’s global reach and financial strength, combined with Bitstream’s strong online font store and OEM business, position Monotype Imaging to serve broader markets, while addressing a wider range of customer needs. The acquisition is expected to strengthen Monotype Imaging’s products and services, while providing customers with improved choice and flexibility.
Included in the acquisition is the popular MyFonts.com sm website, featuring 89,000 fonts from nearly 900 foundries, in addition to the widely used WhatTheFont sm identification service. The transaction also includes the Bitstream® typeface library, the company’s Font Fusion® and Bitstream Panorama™ font rendering and layout technologies, a range of fonts for embedded and mobile environments, and 10 patents. Thirteen employees from Bitstream’s U.S. operations, in addition to 42 Bitstream engineers and type designers who work in Noida, India, are joining Monotype Imaging, providing the company with an expanded global presence.Expected financial impact from the acquisition of Bitstream’s font business Based on the timing of the close of the acquisition of Bitstream’s font business, Monotype Imaging expects the financial impact to be immaterial to the first quarter of 2012 and is reiterating the financial guidance that was provided on Feb. 16, 2012. For the first quarter, the company continues to expect revenue in the range of $32.5 million to $34.0 million, non-GAAP net adjusted EBITDA in the range of $13.5 million to $14.5 million, GAAP earnings per diluted share in the range of $0.15 to $0.17 and non-GAAP earnings per diluted share in the range of $0.21 to $0.23.
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