Jupitermedia / PictureArts

Jupitermedia Corp. on Friday said it has agreed to acquire PictureArts Corp., an online photo agency, for $63.2 million in cash, to expand its commercial image licensing business.

PictureArts creates, licenses and distributes photos to the advertising and design industries. Its libraries include photos of food, nature and individual portraits, according to its Web site.

Jupitermedia, which sponsors events and issues research and publications for the information technology industry, said the acquisition will make it a leading player in the business of commercial image licensing, and bolster its standing among buyers of high-end photos.

The acquisition includes PictureArts' Brand X Pictures, FoodPix, Botanica and Nonstock brands, and its image distribution business, the company said.

Jupitermedia said it expects the deal will add to its earnings and close in this year's third quarter, pending regulatory approval and other closing conditions.

The company said it plans to finance the purchase with cash on hand and borrowed money from a credit facility at JPMorgan Chase Bank NA.

Jupitermedia shares rose 47 cents, or 2.7 percent, to $17.60 in midday trading on the Nasdaq.

(c) AP