The Knot Buys WeddingChannel

New York-based The Knot is acquiring Los Angeles-based, in a deal worth $78M. The deal, worth $57.9M in cash and 1,150,000 shares of common stock, was announced Monday afternoon. WeddingChannel and The Knot both serve the wedding planning and gift buying market. The Knot said that it would finance the acquisition with a follow-on offering of its common stock. If The Knot does not complete the follow-on offering, the company said it would pay $28M in cash and 3.2 million shares of its stock for WeddingChannel. WeddingChannel was backed by Idealab Capital Partners, RRE Investors , and Goldman, Sachs & Co, and others.