Hewlett-Packard Co said it would sell its web-based photo sharing service Snapfish to digital imaging company District Photo.
Financial terms of the deal were not disclosed.
HP, the world's No. 2 PC maker, bought Snapfish for more than $300 million in 2005 and made the company a part of its printing and personal systems group.
Reuters had reported in September that HP was exploring a sale of Snapfish.
HP said in October it would separate its computer and printer businesses from its corporate hardware and services operations this year.
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