By Chelsey Dulaney
Hewlett-Packard Co. said Tuesday that it has agreed to sell its
Snapfish photo-storage business to District Photo, as part of the
company's plan to split up its business.
Terms of the deal weren't disclosed.
H-P shares fell 0.7% to $33.17 in morning trading Tuesday.
Snapfish allows users to store and print their photos.
After the deal closes, which is expected in the second half of
the year, Snapfish will continue to use HP printing products, and
Hewlett-Packard will provide the HP Connected Photo application
developed by Snapfish on its PCs.
Hewlett-Packard has been gearing up to separate its
personal-computer and printer businesses from its corporate
hardware and services operations, which have been billed as the
growth engine.
The recent wave of breakups and spin offs at technology
companies and in the wider corporate world have been fueled by the
idea that companies with a narrower focus perform better.
H-P said Tuesday that the Snapfish deal aligns with its strategy
to focus its organization.
Last month, H-P agreed to buy wireless-networking company Aruba
Networks Inc. in a deal valued at roughly $2.7 billion, expanding
its capabilities in the mobile market.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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