Executives at PhotoChannel Networks (TSX-V:PN) expect to cap off what has thus far been a banner year with an acquisition.
The 13-year-old Vancouver-based digital photo software provider increased revenue 186% to $11.8 million in the nine months that ended June 30.
It's now in the final phase of negotiations to buy U.K.-based WorksMedia Ltd., which operates as Works Imaging. Works sells kiosk and desktop software to retailers who use the products to help customers create and order photo products such as photo books, calendars and photo gifts.
Some of PhotoChannel's retailer customers include Wal-Mart Stores Inc., Sam's Club and Costco.
"PhotoChannel has identified desktop photo product creation software as an area of growth for the company and as such has been searching for a product to complete our digital image ordering solution for retailers," said PhotoChannel CEO Peter Fitzgerald.
The terms of the deal will be announced when the acquisition agreement has been finalized, which the company said would likely be sometime between October and December.