Digital photo service Photobox has acquired the personalised greetings card company Moonpig.com in a GBP120m deal.
The deal will be funded through combination of cash, bank lending, and shares.
The deal will give a multimillion-pound payday for Nick Jenkins, who had founded Moonpig during dotcom boom in 1999.
Senior management from both companies will remain in the enlarged group, according to BBC.
Stan Laurent, who is tipped to be the chief executive of the enlarged entity said, "It’s great to see two high-growth, profitable and ambitious European online brands come together to leverage each other’s strengths and create a global market leader."
Moonpig sells more than 12 million personalised greetings cards a year and it has expanded its offering to include mugs, t-shirts and bottles.
Moonpig.com expects the merger with Photobox will allow it to expand its core business into territories which would be difficult to enter as a standalone business.
