LOUISVILLE, Ky., Oct. 10, 2012 (GLOBE NEWSWIRE) -- CafePress Inc. (Nasdaq:PRSS), The World's Customization Engine™, today announced that it has entered into an agreement to acquire privately held EZ Prints Inc., a complete deployable e-commerce platform, significantly strengthening CafePress' ability to offer its unique products and services everywhere e-commerce occurs.
CafePress is leading the intersection of customization and technology, offering the largest selection of personalized products on the web. The CafePress ecosystem includes – a marketplace of user generated merchandise - online shops for individuals and businesses - and a create & buy service that allows anyone to design and buy their own custom products. Pioneering on-demand printing of over 500 different products joins together with this ecosystem to form the CafePress business model.
CafePress powers the customization platform and online shops for leading brands such as ABC Television, National Geographic and Warner Bros. Entertainment. The acquisition of EZ Prints brings a "plug and play" deployable software technology that enables the CafePress ecosystem to drive online customization by further extending its reach into third party corporate and licensed shops."We have seen strong growth in our large corporate shops business and the addition of EZ Prints to CafePress brings a robust, deployable, cloud-based software solution that accelerates CafePress' vision of enabling customization for corporate partners across the web," said CafePress Chief Executive Officer Bob Marino. "Along with technology, we believe this transaction will enhance revenue and add scale to our business, and the combined organization will amass significant brand power. CafePress has a strong track record of driving significant growth with the companies we have acquired and we look forward to working with the talented EZ Prints team to capitalize on the tremendous customization opportunities within e-commerce." "CafePress and EZ Prints have enjoyed a mutually beneficial business relationship, having previously partnered on projects for Sky Mall and other leading companies. We are excited that our technology - ezp builder, ezp store and ezp tools – can now be components of The World's Customization Engine allowing for customization to take place on any website. Our corporate partner business, ezp services, is the fastest growing segment of our business, and we believe we will benefit from the strong synergies of bringing our operations under the CafePress umbrella," added Wes Herman, Chief Executive Officer of EZ Prints. Wes Herman will join CafePress as a member of senior management. Transaction Summary Under the terms of the definitive merger agreement, at closing, CafePress will acquire all of the outstanding stock of EZ Prints in exchange for approximately $30 million in initial cash. The transaction also includes a single year earn-out opportunity of up to $10 million in the aggregate based on achieving revenue growth and other performance milestones. Subject to the satisfaction of various closing conditions, CafePress anticipates that the transaction will close in approximately 15 to 45 days. A brief slide presentation with an overview of CafePress' business and additional background regarding this transaction can be viewed at http://investor.cafepress.com/events.cfm The slide presentation will be available on the CafePress website through November 9, 2012. Business Update CafePress expects to report third quarter revenue at approximately the midpoint of the Company's previously announced guidance range of $42.5 million to $45.0 million. Adjusted EBITDA for the third quarter is expected to be in the range of $1.1 million to $1.3 million, which is below prior forecasts, due to elevated levels of promotional activity designed to drive customer growth prior to the holiday season. The Company also accelerated investment in facilities expansion during the third quarter, doubling the size of its manufacturing operations in Louisville, KY. This was in preparation of CafePress integrating EZ Prints manufacturing and consolidating several of CafePress' existing remote operations into its main facility over the next several quarters.
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