Cafepress is probably the biggest POD in existence and now they are even bigger. With the purchase of Imagekind they can expand into a higher class market. Cafepress mostly sell t-shirts and cheap goods like mousepads, mugs and the like whereas Imagekind focuses on art and photography which are sold on high quality paper and with expensive frames.
It is good news for Cafepress, but I don’t think it is good news for the consumer as we are losing a competitor in the market. More competition is better for the consumers keeping the costs down and the innovation up.
I came across this on T-Shirt Talk and you can find more info on Venture Beat.