FTD, a floral and gifting company has signed a definitive agreement to acquire Liberty Interactive Corporation’s Provide Commerce floral and gifting businesses for $430 million. The transaction is expected to close by the end of 2014. The transaction will increase FTD's market capitalization and shares outstanding, and generate more than $25 million in annual synergies within 36 months of closing.
Provide Commerce currently operates e-Commerce brands ProFlowers, Shari’s Berries and Personal Creations. The combined companies will offer a wider selection of products as well as new programs and services.
Robert S. Apatoff will continue to serve as FTD President and CEO with Robert Berglass staying on as Chairman of the Board. FTD will expand its Board of Directors from seven to 11 members, adding four Liberty directors to the Board.
"This transaction provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers and our premier network of member florists," Apatoff said. "We expect the combination with Provide Commerce's highly recognizable and successful portfolio of brands to enhance our already robust consumer product offerings. In addition, we expect the transaction will provide us with greater resources to further develop new product and service categories and broaden our consumer demographic through complementary customer bases."