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Jupitermedia Makes Another Image Buy

Jupitermedia said Tuesday it acquired Animation Factory, a stock digital image company, for $9.35 million in cash and debt from VA Software Corp.

Jupitermedia, owner of internetnews.com, said the move expands its images businesses range of offerings and "solidifies Jupiterimages' position as the dominating company providing images by paid online subscription.

"We anticipate significant sales and business synergies between Animation Factory and our Jupiterimages division as well as our other Jupitermedia properties," Alan M. Meckler, chairman and CEO of Jupitermedia, said in a statement.

"We also expect that this acquisition will immediately be accretive to our earnings and cash flows," Meckler said.

The deal marks another move designed to expand the premium content offerings in its Jupiterimages division, Jupitermedia. In July the company bought California-based stock photography firm PictureArts for $63.2 million cash.

In April 2004 the company acquired New Jersey-based stock photography firm Comstock Images and in 2003 it purchased ArtToday.

The South Dakota-based Animation Factory offers paid online subscriptions for royalty-free, 3-D clip art, animated graphics, video backgrounds, Microsoft PowerPoint templates, and e-mail, and Web page backgrounds for business and personal use.

Creative professionals and consumers can access Animation Factory's collection of more than 400,000 original animations and Web designs to incorporate graphics into e-mail, Internet messaging, Web pages, presentations and mobile phones, according to Jupitermedia.

The other part of the buy, Animation Factory's MediaBuilder Network of Web Sites -- which generates more than 18 million page views per month -- also offers free online graphics tools which help to entice users to buy Animation Factory's paid products.