Shutterfly is taken by a company bought for 1.74 billion dollars

Apollo Global Management has agreed to buy Shutterfly for $ 51 per share in cash, according to a statement released Monday.

The deal is for the online retailer at approximately $ 1.74 billion, based on the outstanding shares of the company at the end of March. Apollo will also badume the debt of more than a billion dollars from Shutterfly.

The buyout company plans to merge Shutterfly with rival Snapfish, whose owners will become minority shareholders in the new company, said Apollo.

The offer for Shutterfly represents a 31% premium over its closing price of $ 38.91 on April 23, a day before Bloomberg News says the company based in Redwood City, California, had drawn interest from suitors, including Apollo. Shutterfly's Board of Directors unanimously approved the deal and recommended that shareholders vote in favor of the transaction.

Transactions are expected to close in the fourth quarter.

"Shutterfly has cultivated a deep relationship with its customers," said David Sambur, Apollo's senior partner, in a statement. "At a time when billions of photos are taken every day, Shutterfly is the pioneer of personalized photo products and school photography."

Shutterfly, which sells frames and custom photo albums online, announced in February that it has retained the services of an advisor to examine strategic alternatives after arousing the interest of potential buyers.

Shutterfly closed up 2.7% to $ 50.25 on Monday, giving the company a market value of about $ 1.7 billion. Its shares have fallen about 48% over the past year.

LionTree Advisors advises Apollo on the transaction. Barclays, Citigroup and SunTrust Banks fund the transaction and also serve as financial advisors to Apollo. Apollo gets advice from Paul, Weiss, Rifkand, Wharton & Garrison.

Morgan Stanley acted as financial advisor to Shutterfly and Fenwick & West as legal counsel.