Smilebox is an electronics greetings website that has agreed to be sold for up to $40 million. The deal includes $25 million in upfront cash and $15 million if milestones are met. No major changes are expected to take place as a result of the acquisition.
Smilebox’s 50 employees will continue to operating from their headquarters in Redmond, Washington. Smilebox was founded by former RealNetworks vice president Andrew Wright. The company is expected to post about $15 million in sales next year. The company is currently unprofitable.
Smilebox has raised around $16 million over the past few years including a $2 million round back in February. Previous investors include Bessemer Venture Partners, Frazier Technology Ventures, and several angel investors.
Smilebox has deals in place with Hallmark and Walmart since they launched in 2006. Smilebox has been downloaded by over 15 million people and over 180 million Smilebox greetings have been created thus far. Smilebox could have raised additional venture capital money, but that would have placed a new set of expectations.