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United Online (News - Alert), a provider of consumer products and services over the Internet, has acquired FTD Group, Inc.

 

FTD’s acquisition is expected to provide several strategic benefits to United Online, including a significant increase in scale, diversification of the company's revenue streams and profitability, and expanded marketing opportunities and efficiencies.

 

``I am delighted to welcome FTD's management team and talented employee base to the United Online family,'' said Mark R. Goldston, United Online chairman, president and chief executive officer, in a statement.

 

``FTD's world-class brands, customer demographics and significant Internet presence are a great fit with our existing consumer brands. We plan to leverage United Online's proven marketing expertise in attracting consumers to the highly popular http://www.ftd.com Web site and the 1-800-SENDFTD order line, and to the thousands of FTD-affiliated florists who are the life-blood of this great, nearly 100-year old company.''

Goldston said that FTD's Interflora business unit, which is a premier floral brand in the United Kingdom and Ireland, represents a tremendous opportunity as well.

 

He said that his company was looking forward to the international opportunities afforded by the http://www.Interflora.co.uk Web site and the large base of exclusive Interflora-affiliated florists within those markets.

 

The FTD and Interflora brands include the Mercury Man logo that is displayed in approximately 45,000 retail floral shops worldwide, and which is one of the most highly displayed retail logos in the world.

 

He anticipates that marketing initiatives for FTD will include cross-selling FTD products to more than 50 million existing domestic consumer accounts across the Classmates, MyPoints, NetZero, and Juno businesses, and utilizing the MyPoints loyalty rewards platform as a mechanism to reward the millions of FTD customers for purchasing products from FTD.

 

Mark R. Goldston was of the view that the acquisition also provides United Online with a significant increase in scale.

 

The acquisition was financed in part with the proceeds of term loan borrowings under the previously announced $425 million credit facility, which includes a $50 million revolving credit facility that was undrawn at the closing of the transaction, that a subsidiary of United Online entered into with Wells Fargo Bank, National Association (the obligations under which were assumed by FTD upon the consummation of the acquisition) and United Online's previously announced $60 million credit facility with Silicon Valley Bank. The remaining cash consideration in the transaction was paid from United Online's cash on hand.

 

United Online is a provider of consumer products and services over the Internet, where the company's brands have attracted a large online audience that includes more than 60 million registered consumer accounts.

 

The company's floral-related offerings include products and services for consumers and retail florists, as well as for other retail locations offering floral products and services, in the U.S., Canada, the United Kingdom, and the Republic of Ireland.