Snapfish deal may benefit ValueLabs
Times News Network, Hyderabad, 06 April, 2005.
Hyderabad: City-based ValueLabs is set to scale up its operations. The US-based online photo services firm Snapfish, a major client of ValueLabs, has been recently acquired by Hewlett Packard (HP). The size of the deal according to investment bank Merrill Lynch is US$ 400 million. ValueLabs is also planning to increase its headcount subsequently by 2007.
According to Snapfish Chief Technical Officer (CTO) Bala Parthsarathy, Snapfish’s expertise in online photo services coupled with HP’s worldwide customer reach will rapidly enhance HP’s ability to capitalize on the growing market for online photo printing.
Snapfish offers photo products and services for which ValueLabs is the only strategic partner. The services of Snapfish include online photo sharing, photo storage and management, online print ordering and wireless imaging services for camera phone and color handset users.
The acquisition, which will broaden HP’s position in the $17 billion online digital photography market, will also translate into more business opportunities for ValueLabs, according to its CEO Arjun Rao. “Currently 15% of ValueLabs’ business comes from Snapfish. As HP is set to grow manifold in the online photography business, we see the partnership with Snapfish growing, there by ensuring more projects as well as a foray into new areas,” Arjun Rao said. The Company, however, views this as an opportunity to move into new areas of business. Snapfish’s deal with HP will be closed by this month end with HP retaining the former’s entire workforce.