Shutterfly to buy photography company Lifetouch for $825 million

Shares of Shutterfly surged 14.7 percent to $61.82 in trading after the bell.

Lifetouch photographs more than 25 million children annually during the fall picture day tradition, serving more than 10 million households. It had revenue of about $963.9 million for the fiscal year ended June 30, 2017.

Shutterfly also reported fourth-quarter profit and sales above analysts' estimates.

Morgan Stanley & Co. LLC is the financial adviser to Shutterfly, while BMO Capital Markets advised Lifetouch's board.

(Reporting by Munsif Vengattil and Vibhuti Sharma in Bengaluru; Editing by Anil D'Silva)