Vistaprint Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of speedy business-card maker Vistaprint (NAS: VPRT) fell as much as 10% today after announcing an acquisition.
So what: The company is purchasing Webs in a $117.5 million deal to expand its reach into Webs' do-it-yourself sites. Vistaprint will pay $100 million in cash and $17.5 million in restricted stock for the company.
Now what: The market obviously isn't a fan of the deal, and even management expects it to lower earnings per share in both fiscal 2012 and 2013. The price seems pretty steep for a company with $9 million in revenue that isn't expecting to be profitable until 2013. I'm not buying this move today, and I think the company could probably have found better value elsewhere.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Vistaprint V. Motley Fool newsletter services have recommended buying shares of Vistaprint V. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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