United Online Completes FTD Merger

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United Online Inc. said late Tuesday that it had completed its acquisition of national floral retailer FTD Group Inc. in a deal finally valued at $754 million, including assumption of debt.

FTD shareholders, who approved the transaction on Monday, are receiving $441 million consisting of approximately $307 million in cash and approximately 12.3 million shares of United Online common stock. They’ll now own approximately 15 percent of the Woodland Hills-based Internet service provider, which also operates the Classmates.com networking site.

FTD, which links small floral shops around the country, has established a major Internet presence. It’s a particularly attractive new revenue source for United Online, which provides Internet and e-mail access under the NetZero and Juno brands.

FTD becomes a wholly owned subsidiary of United Online and will keep its U.S. headquarters in Downers Grove, Ill. and international headquarters in the United Kingdom.

United Online shares closed up 13 cents, or 1 percent, to $10.93 in Tuesday trading on the Nasdaq prior to the announcement.

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