Sposato

Picnik Chief Executive Jonathan Sposato chatted with TechFlash this afternoon shortly after the online photo editing service sold out to Google, marking the second time that the search giant has purchased one of his startup companies.

And while Sposato wouldn't budge on the purchase price, he did note that price tag was a "very, very happy number" which "put a big smile on everyone's faces." As a result of the deal, Sposato and the rest of the 22 employees will move to the Google offices in Seattle's Fremont neighborhood.

Sposato noted that nearly all of the employees who work at Picnik will come out ahead on the deal financially, calling it a "very, very, very great win."

In Picnik, Google acquires a fast-growing Web property and one of Seattle's better known startup successes of late. The company -- founded in 2005 by Mike Harrington and Darrin Massena -- recorded 16.8 million unique visitors last month. That's more than double the 8.8 million uniques the company recorded for the same period last year. Meanwhile, users of the online service -- which allow people to edit photos --

The company -- bootstrapped with more than $1 million -- also has been profitable since last year.

"We are very proud of the fact that, regardless of how capitalized this company was ... this is a fantastic return for everyone's time and energies," he said.

Sposato said that Picnik's brand will remain. Asked what that means for Picasa, Google's photo editing service, Sposato said he expects a very "synergistic situation."

"It will probably be a one plus one equals three scenario, which creates a really significant photo service for everybody," he said.

Picnik received a number of M&A inquiries, but Sposato said he chose to go the Google route in part becuase of "culture fit." He called Google -- with its top engineering talent -- a "perfect buyer" for Picnik.

"Google is a known quantity by me, and Google has just hands-down .... a combination of some of the nicest plus smartest people that I've ever worked with," said Sposato. "And when I think about the world of potential suitors out there and what is best for the employees of Picnik and I think about our brand and how our brand comes across to consumers as being this really fun and delightful and friendly brand, I think about what other big company has that same brand identity? And Google is at the top of that."

Sposato said the team decided to sell out now because they could get tremendous "lift" on future product directions with Google. Secondly, the 42-year-old exec said that many of the partners like to grow things over a three to five year time horizon.

"I think it was definitely at that turning point for some of us, and a chance for us to grow and learn some new things at a company like Google," he said.

Sposato declined to comment about his employment contract with Google and how long it lasts. But he did say he's excited to join Google, which purchased his previous startup Phatbits in 2005.

"We are sincerely happy with the deal and starting work at Google ... it is a really, really good thing for us," he said.

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Previous coverage: "Google acquires Picnik"