FTD sold for $800 million

Downers Grove-based FTD Group Inc. said Wednesday it has agreed to be acquired for $800 million in cash and stock by United Online Inc., the operator of NetZero and other Internet services.

Under the terms of the agreement, FTD stockholders will receive $7.34 in cash, 0.4087 of a share of United Online common stock and $3.31 principal amount of United Online notes for each share of FTD common stock in the merger.

The deal is expected to close by September after regulatory and stockholder approvals.

After the closing of the acquisition, FTD will continue to operate as a wholly-owned subsidiary of United Online in Downers Grove and its international headquarters in the United Kingdom.

United officials said in a statement that it was attracted to FTD to diversify its revenue streams and the chance to expand in the floral market.

"This transaction will meaningfully diversify our revenue base within a large global market experiencing significant migration to the Internet," Mark R. Goldston, chief executive officer of United Online, said in a statement. "We believe the acquisition provides an excellent opportunity to deploy our substantial cash resources and to leverage our strong cash flow to enhance stockholder value."

United has a "proven operating track record" FTD said.

"As a significant advertiser, United Online is the ideal partner to help FTD realize greater efficiencies in media spending and customer acquisition," FTD's CEO Michael J. Soenen said in a statement.