The acquisition, expected to close by May, will give Palo Alto, Calif.-based HP access to Logoworks’ technologies and its global network of several hundred Web-based graphic designers to provide small and medium-size businesses with cheap professional logo design services. The deal also includes LogoMaker, a do-it-yourself design application.

Logoworks, which also provides brochure, business card and Web site design services, has been partnering for the past few years with Hewlett-Packard and other companies including American Express and Office Depot to provide logo designs to their small business customer base.

Ben Nelson, HP’s general manager of destination Web service, described the acquisition of Logoworks as a “natural fit” that will help HP tap a potential market of nearly 18 million small and medium-size businesses in the United States.

“HP now provides template designs that its small and medium-size business customers can use. Logoworks is not a template-driven design service but provides custom designs for a fraction of the cost,” he said. “The idea is to build brand equity around Logoworks’ distinct brand and service that customers can relate to.”

To that end, the company plans to keep its corporate name. It will also retain its 120-plus local work force. But it will move from its current location at the Canopy Business Park to a larger 20,000-square-foot new office at NorthPointe Business Park in American Fork by Sept. 1.

Being part of the HP family of companies “exponentially accelerates Logoworks’ ability to change the way graphic designs are done and enable small businesses to look great in their logo, brand and Web site at affordable prices,” said Logoworks CEO Paul Brockbank.

Logoworks currently services around 65,000 customers, mostly in the U.S., and in Europe, Asia and the Middle East.

“Instead of going to a big agency and spending significant sums of money to get professional custom designs, small and medium-size businesses can now get brand identity packages with multiple design concepts for $300, compared with the traditional brand identity package that can cost $2,000 or more,” Brockbank said.

This story appeared in The Daily Herald on page D6.