TORONTO May 5 Staples Inc said on
Monday it will pay roughly C$74 million ($67.5 million) for
Canada's PNI Digital Media, 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
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.
($1 = 1.0963 Canadian Dollars)
(Reporting by Euan Rocha; Editing by James Dalgleish)