Digital photo printing service Photobox has announced a merger with the personalised greetings cards manufacturer, Moonpig.com.

The deal, which is reported to be worth £120m, will see senior management from both companies retain positions in the newly created group.

More than 12 million personalised greetings cards are sold by Moonpig each year, and they have recently expanded to include mugs, t-shirts and bottles.

Photobox provides a range of photo print products, including standard prints, photobooks, posters, photo mugs and other personalised gifts. The company already offers a range of greetings cards including Christmas, birthday and thankyou cards.

Earlier in the year, Moonpig chairman Nick Jenkins denied the rumours that the company was about to be sold to Photobox, saying the media had "jumped the gun" with reports.

Profits

In 2010, Moonpig delivered 8.2 million cards, boosting their pre-tax profits from £6.7m to £11.2m.

Speaking to the BBC, Nick Jenkins said the merger would allow the company to "take our core greeting card product to countries which would be difficult to access as a standalone business."

On Photobox's Twitter feed earlier today, a company spokesperson commented that the merger would mean "we can use our collective experience and talent to continue to create easy to use and innovative products while better serving our customers."

Via BBC News.