HP announced it will sell its photo sharing service Snapfish to District Photo. Financial terms of the deal were not disclosed, Reuters reports. HP, the world’s No. 2 PC maker, bought Snapfish for more than $300 million in 2005 and made the company a part of its printing and personal systems group.
Reuters had reported in September that HP was exploring a sale of Snapfish. HP said in October it would separate its computer and printer businesses from its corporate hardware and services operations this year.
Snapfish allows users to store and print their photos, notes the Wall Street Journal. After the deal closes, which is expected in the second half of the year, Snapfish will continue to use HP printing products, and Hewlett-Packard will provide the HP Connected Photo application developed by Snapfish on its PCs. Hewlett-Packard has been gearing up to separate its personal-computer and printer businesses from its corporate hardware and services operations, which have been billed as the growth engine.
The recent wave of breakups and spin offs at technology companies and in the wider corporate world have been fueled by the idea that companies with a narrower focus perform better. H-P said Tuesday that the Snapfish deal aligns with its strategy to focus its organization. Last month, H-P agreed to buy wireless-networking company Aruba Networks Inc. in a deal valued at roughly $2.7 billion, expanding its capabilities in the mobile market.
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Date: April 21, 2015