Smith Micro Buys PhoTags

Aliso Viejo-based Smith Micro has purchased PhoTags, a developer of photo and music management software. Smith Micro said last week that it purchased PhoTags, a firm which has offices in New York and Israel, for approximately $4.9M in stock. PhoTags's Active Images product allows users to store text messages, music, sound, and documents in JPEG files, and is targeted at mobile phone and wireless applications. The deal also calls for up to $3.5M in additional earnout.