Hewlett-Packard Co (NYSE: HPQ) 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 number-two PC maker, bought Snapfish for more than $300 million U.S. 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.
HP shares dipped 24 cents, or 0.7%, to $33.18 U.S., within a 52-week trading range of $31.00 U.S. to $41.10 U.S.
