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Thursday, Aug 11, 2022
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United Online to Buy FTD

United Online Inc. said Wednesday that it agreed to acquire flower- delivery service FTD Group Inc. for about $800 million in cash, stock and debt.


The deal has the Woodland Hills-based Internet company paying $198 million in cash along with 12.4 million shares of United Online, worth about $132 million. The deal also includes $100 million in notes, $292 million in debt and $69 million in fees. The deal values shares in the Downers Grove, Ill.-based online florist at $15.08 each a 12 percent premium on FTD’s closing price Tuesday.


Separately, United Online said Wednesday that its first-quarter earnings will beat expectations.


The company said in that it now expects revenue of $121 million to $122 million, up from previous guidance of $116 million to $120 million. Wall Street is expecting $119 million according to a poll conducted by Thomson Financial.


The owner and operator of Internet service provider NetZero also said it expects profit of between 30 and 31 cents per share excluding one-time items. That’s also ahead of analysts’ predictions of 24 cents per share.


Shares in United Online were down 2.5 percent to $10.56 in early trading Wednesday.

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