H.P. plans to leverage Logoworks' technologies and services to provide small businesses with designs at a fraction of market cost, said Ben Nelson, general manager of H.P.'s destination Web services in San Francisco.
Logoworks customers access the company's services via the Internet and can purchase design packages for logos, Web sites, business cards, stationary and other products. It has 25 in-house graphic designers and a network of 200 freelance designers, which the company said saves money in overhead.
With 120 full-time employees, Logoworks is scheduled to move this fall into new space at the North Pointe Business Park in American Fork.
"We will keep our name and nothing internally will change too much," said spokesman Jonathan Munk. "We're hoping to be able to use some of the resources H.P. will provide for us. Obviously, they have a wonderful customer base."
H.P. was attracted to Logoworks' track record and innovative approach to providing affordable designs.
"It's not really the size of the business - it's the capability," said Nelson. "They've got the world's largest network of designers who are connected online. It affords high quality work for a low cost to customers. It was something that was irresistible to us."
Nelson likened H.P.'s purchase of Logoworks to that of Snapfish, an online photo finisher, two years ago.
Like Snapfish, "the strategy [for Logoworks] is clear," he said. "We saw a terrific company that was a leader in its field and turbocharged its growth."
Gaining national attention last year, Logoworks ranked No. 66 on the Inc. 500 list, with three-year growth of 1,053 percent. Morgan Lynch and Joey Dempster founded the company in 2001.
With a portfolio that spans printing, personal computing, software, services and information technology (I.T.) infrastructure, H.P. is among the world's largest I.T. companies, with $94.1 billion in revenue for the four fiscal quarters that ended Jan. 31 of this year.
* Founded in 2001, provides design packages for logos, Web sites, business cards, stationery and other products
* Employs 120 full-time employees and an online network of freelance designers
* Moving this fall from Lindon to American Fork
* Over 45,000 customers, including subsidiaries of Disney, SeaWorld, and Microsoft