The deal, which will significantly strengthen EFI's web-to-print and cross media marketing software portfolio, is not expected to be material to EFI's Q3 or full year 2014 results.
Gabriel Matsliach, senior vice president and general manager EFI Productivity Software, said: "Web-to-print is one of the fastest growing parts of the printing and marketing software segment.
"This acquisition gives us the ability to further address this segment with additional, best-in-class variable data and cross media technologies."
DirectSmile and its employees, including co-founders Christoph Schacht and Christoph Clermont, have joined EFI's Productivity Software Web2Print Solutions Group.
Berlin-based DirectSmile invented image personalisation in 2001 and has since branched out into video personalisation, web-to-print and cross media marketing automation.
Its core products include DirectSmile Cross Media, DirectSmile Integration Server, DirectSmile VDP Studio and the eponymous DirectSmile personalisation software.
EFI plans to integrate DirectSmile's technology into its own web-to-print and eCommerce tool, EFI Digital StoreFront, but will also continue to develop, sell and support DirectSmile products as standalone software for agency, enterprise and print industry clients.
DirectSmile has forged numerous partnerships with fellow print industry suppliers, including digital printer manufacturer Ricoh, which is also an EFI Fiery OEM partner.
The acquisition follows EFI's second quarter results announcement last week in which it reported revenues of $193m, up 7% year-on-year, and pre-tax profit of $12.3m, up 7.7%.
