It wasn't a secret that Celebrate Express -- the struggling Kirkland online and catalog party supplies retailer -- was considering a buyout. (In April, the publicly traded company engaged an investment bank to consider offers.)

Today, the 14-year-old company has entered an agreement to be acquired by Liberty Media for $31 million in cash, or $3.90 per share. That's a 39 percent premium over the company's closing stock price from Wednesday.

Interestingly, prior to the merger being announced this afternoon, Celebrate Express' stock tumbled 17 percent to a 52-week low. (It is now coming back strong in after-hours trading, up 52 percent to $3.51)

Celebrate Express will be combined with Buyseasons, an online costume and party supplies retailer that Liberty Media acquired in 2006.

Founded in 1994 by Mike and Jan Jewell, Celebrate Express completed a $57 million public offering in 2004. It used the cash to expand into new product categories, growing to more than 400 employees a few years later.

The company had cash and cash equivalents of $14.8 million for the quarter ended Feb 29 and posted a net loss of $12.9 million for the period. Meanwhile, sales at the company's Birthday Express, Costume Express and other brands declined 20 percent to $13.1 million during the quarter.

Here's the press release on the acquisition, which notes that Arch Ventures, Thesis Capital and Spencer Management have agreed to vote their shares in favor of the deal. Together, the investment firms own 40 percent of Celebrate Express.