Staples, Inc. (Nasdaq: SPLS) is set to buy Vancouver-based PNI Digital Media (TSX: PN) after coming to an agreement allowing the office supply retail giant to acquire the tech company for $74 million.
Staples announced May 5 it would scoop up PNI's stocks for $1.70 a share — 32% above its May 2 closing price of $1.29.
The West Coast company specializes in software that allows retailers to offer personalized products such as photo albums, business cards, stationery and invitations through mobile kiosks and apps.
"Staples is a very unique retailer and I think there's just some amazing opportunities to keep our business innovative and thriving, but keep it an impact business," PNI's chief executive officer Kyle Hall said.
The deal came about after PNI landed Office Depot, Staples' main competitor, as a customer.
Hall said Staples took notice when PNI tried offering them the same services but the office giant soon turned its attention to acquiring the small West Coast tech company.
PNI's chief financial officer Cam Lawrence said Staples plans to expand operations in Vancouver and keep the management team intact.
"They've just really been blown away with what this team has been able to deliver, so maintaining that culture of a small, hungry tech company that we've really started to cultivate — they see that as a huge asset," he said.
PNI employs about 165 people worldwide, with about 150 of them based in Vancouver.
Lawrence said the company has hired about 15 people so far in 2014 and the plan is to hire at least that many more by year's end.
It's now up to shareholders to approve the arrangement at a special meeting set for July.
News of the deal sent PNI's stocks up to $1.70 a share Monday morning.
