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Smith Micro Buys StuffIt Developer Allume

Smith Micro Software, Inc. today announced the acquisition of Allume Systems, Inc., for $11 million in cash and $1.75 million in Smith Micro stock. Allume, formerly known as Aladdin Systems, is the maker of long-standard StuffIt compression products as well as a number of Macintosh and Windows utilities; Allume was acquired by International Microcomputer Software, Inc. (IMSI) in August 2004.

Smith Micro’s interest in Allume focusses on the company’s development of a new JPEG compression technology which further reduces image sizes by up to 30 percent without any additional loss of image quality. Smith Micro plans to promote the technology wireless operators and handsets and apply it to MPEG video and MP3 audio media as well as images.

Smith Micro is primarily known to consumers for its FAXstf and HotFax fax software products, although it also markets video conferencing products, the WebDNA Web site production suite, and wireless connectivity software.