Smith Micro Software has acquired Allume Systems from International Microcomputer Software Systems Inc. (IMSI).

Allume (formerly Aladdin Systems) develops StuffIt, Spring Cleaning and other utilities for Mac OS X and Windows. Smith Micro will pay $11 million in cash and $1.75 million in shares to purchase Allume.

Allume Systems was acquired by IMSI in early 2004.

Smith Micro is a developer of wireless communication, Internet and e-business software. Their Mac products include FAXstf and QuickLink Mobile.

Allume recently announced the development of a JPEG compression technique that yields a 30 per cent reduction in the size of images without any penalty on image quality, and the company expects to be able to apply a similar technique to MPEG video and MP3 audio files.

It's this new compression technology that interested Smith Micro, the company said in a statement - Smith Micro hopes to interest wireless service carriers and handset makers in licensing the technology for their own products and services.