Monotype Imaging Holdings inc. (TYPE), a provider of text imaging solutions, said Monday it has completed the acquisition of Bitstream Inc.'s font business for $50 million in cash, subject to adjustments based on the closing net asset value of the company.
The transaction includes the MyFonts.com website, the Bitstream typeface library, the company's Font Fusion and Bitstream Panaroma font rendering and layout technologies and 10 patents.
Thirteen employees from Bitstream's U.S. operations and 42 Bitstream engineers and type designers from Noida, India will also join Monotype.
The company said that the acquisition is expected to strengthen its products and services, while providing improved choice and flexibility to customers.
Monotype said that the financial impact of the acquisition is immaterial in the first quarter of 2012. The reaffirmed its guidance for the quarter, expecting net earnings of $0.15 to $0.17 per share, and non-GAAP earnings of $0.21 to $0.23 per share. Revenue are still expected to be between $32.5 million and $34 million.
Analysts currently expect earnings of $0.23 per share and revenue of $33.22 million for the first quarter.
The company has raised its full-year 2012 outlook, now expecting non-GAAP earnings of $0.96-$1.01 per share on revenues of $146 million-$151 million. Earlier, it estimated non-GAAP earnings of $0.93-$0.98 per share on revenues of $133 million-$137 million.
Analysts expect earnings of $0.96 per share on revenues of $136.13 million for the full year 2012.
The company said it expects the acquired Bitstream's font business to contribute $13 million-$14 million in revenue for 2012.
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