Hallmark Cards, Shutterfly team up

NEW YORK -- Greeting card company Hallmark Cards Inc. is teaming up with online photo publishing company Shutterfly Inc. on a variety of co-branded products.

Financial terms were not disclosed.

As part of the deal disclosed last week, more than 1,000 Hallmark cards will be available on Shutterfly's new greeting card website, Treat.com. The site, which launched in April, allows uses to personalize and send cards online.

Shutterfly lets people store, print and share photos on the Internet. In April the Redwood City, Calif., company emerged as the winning bidder for Eastman Kodak Co.'s online unit. Kodak filed for bankruptcy protection in January. It will close its online photo service July 2 and will transfer the business to Shutterfly.

The partnership will also make some Hallmark holiday cards available on Shutterfly's website and on tinyprints.com starting in the fall. Hallmark said it will continue to offer customizable products, including invitations, personalized greeting cards and announcements, on its own website.

"The millions of consumers who already store photos on Shutterfly will now have easy access to Hallmark's creative and editorial expertise as they create their own individualized cards through a quality experience on Shutterfly," Rob Bensman, Hallmark vice president of strategic alliances, said in a statement.

Next spring, Hallmark Gold Crown stores will offer a range of gifts that can incorporate photos. Once purchased, consumers can go to Shutterfly's website and select photos that they'd like to use within their gift item. Shutterfly will print and mail the photos chosen for free.

Privately held Hallmark sells its cards and other products at more than 38,000 locations in the U.S. The company is based in Kansas City, Mo.