United Online buying FTD Group in $800M deal

United Online Inc. is buying floral network FTD Group Inc. for $456 million, plus the assumption of FTD debt for a total price tag of $800 million.

Under the terms of the deal, FTD stockholders will receive for each share of FTD stock:

• $7.34 in cash
• 0.4087 of a share of United Online stock (NASDAQ: UNTD)
• $3.31 in United Online senior notes due 2013

Under that breakdown, the $456 million purchase price breaks down to $222 million in cash, 12.35 million shares of United Online stock and $100 million in notes.

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After the closing of the deal, which is expected in the third quarter, the former FTD stockholders will own 15 percent of United Online.

FTD will operate as a wholly owned subsidiary of United Online and will keep its United States headquarters in Downers Grove, Ill., and its international headquarters in the United Kingdom.

Also upon the close of the deal, United Online will reduce its regular quarterly dividend from 20 cents a share to 10 cents a share.

Woodland Hills' United Online is a provider of consumer Internet and media services. The company's products include Classmates.com, NetZero and Juno.