TORONTO Staples Inc (SPLS.O) said on Monday it will pay roughly C$74 million ($67.5 million) for Canada's PNI Digital Media PN.TO, giving it control of the software maker that powers in-store kiosks to print photographs, calendars and wedding invitations.
Framingham, Massachusetts-based Staples is paying C$1.70 for each share in PNI, a premium of 32 percent to PNI's close on the Toronto Stock Exchange on Friday. PNI shares rose more than 30 percent to C$1.70 on Monday, following the bid.
Vancouver-based PNI said with Staples' support it expects to significantly expand the services it offers to its retailers and partners. Its software, which powers both online and in-store platforms, is currently used by retailers such as Costco and Walmart Canada.
Shareholders that control nearly 18 percent of PNI's shares, including all of the directors, executives and investment firm Invesco Canada Ltd, have agreed to vote their shares in favor of the proposed deal. PNI's board has advised shareholders to back the deal at a meeting to be held on or around July 8.