Logoworks reels in HP

More

This week Hewlett-Packard Co. (NYSE: HPQ) bought privately-held Logoworks. The price was not disclosed and was probably relatively small (at least compared to HP's $111 billion market cap).

Logoworks got its start in 2001 and, as its name implies, helps companies come up with cost-effective logos and other designs. The firm has a team of 40 designers who are on location (not outsourced to some far-away location around the globe).

The company did not disclose its revenues but it has served over 45,000 customers, some of which include biggies like Disney Co. (NYSE: DIS) and Microsoft Corp. (NASDAQ: MSFT).

As for synergy, HP will certainly get some traction from its online properties and even printer business (need to put those logos on letter head, right?).


But I think the big opportunity is picking up new small business customers. After all, when starting a company, it's fairly common to come up with a logo.

And, if the logo looks cool, the customer may be inclined to buy other products.

All in all, it's a pretty smart deal – especially for a company the size of HP.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Symbol Lookup
IndexesChangePrice
DJIA+150.2510,058.64
NASDAQ+24.822,150.87
S&P 500+13.781,070.52

Last updated: February 09, 2010: 04:59 PM

Hot Stocks

DailyFinance Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines