German social reading app Readmill confirmed that it has been acqui-hired by Dropbox and will be shut down soon. The transaction is valued at $8 million in combined stock and cash, according to TechCrunch.

Readmill co-founders Henrik Berggren and David Kjelkerud announced on a blog: "As of today, it is no longer possible to create a new account, and on July 1, 2014, the Readmill app will no longer be available."

Under the terms of the said deal, Readmill's co-founders will relocate to the Dropbox headquarters in San Francisco. Users, on the other hand, can still export their data and download saved books from the app, the report detailed.

Readmill is a universal app that can be downloaded on iPhone, iPod touch, iPad, and iPad mini. The app allows readers to comment on the novels that they have read. The company had previously raised an undisclosed amount in its Series A round with Wellington Partners as lead investor, App Advice explained.

How Dropbox will use Readmill in its service is yet to be seen, the report added.