Redwood City, Calif. - Shutterfly, Inc., a leading Internet-based social expression and personal publishing service, announced today that it has acquired certain assets and liabilities of WMSG, Inc. (WMSG) to enable a complete solution for variable digital print marketers and other print-on-demand opportunities. WMSG is a privately-held, digital direct marketing specialist with strong data management and marketing analytics capabilities located in Dallas, Texas.

"We're excited to combine WMSG's data management and marketing analytics capabilities with Shutterfly's state-of-the-art manufacturing resources. Together, we believe we can bring efficient, scalable end-to-end variable digital marketing solutions to direct marketing campaigns of any size and scope," said Jeffrey Housenbold, president and CEO of Shutterfly. "The WMSG team brings a wealth of experience delivering high-ROI direct marketing campaigns and other print-on-demand services that will greatly benefit our existing commercial clients and help enable accelerated growth in this large and growing market."

WMSG began operations in 2005, and has earned a reputation for delivering high-performing direct marketing campaigns for marketing agencies and several Fortune 500 clients, including Toyota and Dell. WMSG President Jim Liszewski will join Shutterfly and lead the commercial print initiative reporting to Dwayne Black, senior vice president of Operations. The transaction, which closed on November 5, 2010, was structured as an asset purchase and the acquisition consideration consisted of $6 million cash. The transaction will not have a material impact on Shutterfly net revenues, results of operations or cash flows for the quarter ending December 31, 2010.