Big news for our friends at District Photo, which will re-acquire Snapfish back from HP. An announcement released today by HP says:
As part of District Photo, Snapfish will be well positioned to continue to grow its global online photo service, partnering with leading retailers and helping customers around the world easily store, share and print their photos online. District Photo expects to provide Snapfish customers with the same level of service and support as they receive from HP.
After the transaction closes, HP will maintain a partnership with Snapfish. Snapfish will continue to use HP printing solutions, and HP will provide the HP Connected Photo application developed by Snapfish on HP consumer PCs, including the Sprout computing platform.
Subject to regulatory approvals and other customary closing conditions, HP expects the transaction to close in the second half of its fiscal year 2015. Financial terms of the deal were not disclosed.
Analyst Frank Baillargeon of f/22 Consulting commented, “District Photo’s (re)acquisition of Snapfish has major competitive implications. Certainly increased anxiety in Redwood Shores. DP can and will compete very well with Shutterfly in the U.S. and Cewe, Cimpress, etc. in UK and EU. HP unloads a business unit that no longer fits. Neil Cohen signals that he and his team are ready to become one of the truly dominant global forces in photo output. I’d loved to be a fly on the wall at DP’s leading retail customers today. Here they are, once again, facing serious and determined competition from a major supplier (or will a new collaborative model emerge?). Congratulations to District Photo! It’s terrific to see this evidence of faith in photography. Snapfish is back in great hands!”
Scott Brownstein of Brownstein & McCabe noted, “This should be incredibly encouraging news for all of us who love and value photography. Things are definitely looking up when a successful and experienced photo entrepreneur and industry icon like Neil Cohen ‘doubles down’ on his commitment to connected imaging and District Photo takes SnapFish back from HP. Neil has personally participated in most aspects of consumer photography going back at least 40 years and his business agility, innovation and accomplishments prove that we can expect to be surprised and amazed at what he has in mind. District is a team that I would bet on.”