Shares of Shutterfly (SFLY) - Get Report surged on Monday on a report that private-equity firm Apollo Global Management was in the lead to acquire the online digital photo merchandise and services company.
Citing people familiar with the matter, Reuters reported on Monday that Apollo has submitted an undisclosed bid for company -- the highest among other private- equity firms interested in acquiring Shutterfly -- and that a deal could be announced as soon as this week.
A deal would be the culmination of several years of private-equity interest in Shutterfly, which allows customers to make photo books, cards and gifts from their photos. The company has faced an increasingly tough time amid growing competition, forcing it to explore a sale.
Apollo's exact offer was not disclosed, but the deal would value Shutterfly at close to $2 billion, excluding debt of more than $900 million, sources told Reuters.
The Redwood City, Calif.-based company last month reported a first-quarter loss of $2.44 a share on revenue of $324.7 million, beating expectations.
For the full year, the company expects to earn between 61 cents and $1.11 a share on revenue ranging between $2.13 billion $2.21. Analysts expect the company to earn 71 cents a share on revenue of $2.17 billion for year.
Shutterfly shares jumped more than 5% on the news on Monday, rising $2.60 to $51.55 in trading on the Nasdaq Stock Market.