American Greetings Corp. to acquire Egreetings Network Inc. for 8.75 times revenue, The

American Greetings Corp. to acquire Egreetings Network Inc. for 8.75 times revenue, The

The Deal: The American Greetings Corp. has agreed to purchase Egreetings Network Inc. for $28 million in cash. After the news of the acquisition was announced, shares of American Greetings rose 30 cents to close at $12.60.

Discussion: Egreetings Network Inc.’s Web site has more than 6,000 free electronic greeting cards for all occasions, which users can personalize and send via e-mail. It also offers electronic greetings for MSN’s more than 200 million monthly visitors. In addition, Egreetings has e-commerce connections with retailers such as CDNow, FTD and Godiva Chocolates.

The American Greetings Corp. is the No. 2 United States maker of greeting cards, behind Hallmark. The company makes American Greetings, Forget Me Not, Carlton Cards and Gibson Greetings brand missives. It also produces DesignWare party goods, GuildHouse candles, PlusMark gift wrap, DateWorks calendars and Designers’ Collection stationery. Subsidiaries include Learning Horizons,

Magnivision and AmericanGreetings.com. The firm inched closer to catching Hallmark after its 2000 purchase of No. 3 Gibson Greetings.

Copyright NVST.com, Inc. Feb 19, 2001

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