District Photo swallows Snapfish

District Photo, a mail-order film processor, says it has acquired online photo company Snapfish. The terms of the deal were not disclosed. Beltsville, Md.-based District Photo said Snapfish will operate as an independent business unit in San Francisco and will maintain the Snapfish brand as well as its existing staff. Snapfish's service will remain unchanged as a result of the acquisition.

Founded two years ago, Snapfish captured funding from Eastman Kodak, Compaq Computer, BellSouth, the Mayfield Fund and other private investors. In March, Snapfish changed its pricing for film developing as a result of the uncertainty in the online advertising climate. District Photo, which operates in parts of Europe and Canada, began in 1949 and runs its own mail-order film business under the York, Clark, Truprint and other private brands. The company also provides wholesale processing services to Kodak and has been Snapfish's processor, according to District Photo. --Gwendolyn Mariano, Special to ZDNet News