PhotoChannel Networks Inc., (TSX-V:PN) which provides e-commerce technology and online digital photo processing and music download systems to retailers, has made an $18.2 million bid for Pixology plc, a U.K.-based digital photofinishing provider.
The Vancouver company will pay about $0.90 a share for each Pixology share, representing a 55.3% premium of Pixology shares traded on the London Stock Exchange.
PhotoChannel said it plans to use available cash for the acquisition, which includes US$14.5 million from a private placement that closed April 10.
The acquisition, which must still receive complete customary and regulatory approvals, will help PhotoChannel expand into the European market. The company also plans to expand into Latin American and Asia.
Pixology will serve as the U.K. hub for PhotoChannel's European expansion.
PhotoChannel's share price range during the past week: between $4.20 and $4.51; 52-week high: $5.77; 52-week low: $0.90.