VANCOUVER—In a $500,000 deal, PNI Digital Media acquired Quarterhouse Software, a Texas developer of web-based print-on-demand software for commercial printers and print distributors.

"Quarterhouse has an outstanding development team, which has developed a first-class set of automated content management tools that we intend to utilize both in the business printing market, as well as our core photo business," said Kyle Hall, chief executive officer of PNI Digital Media, in a released statement.

"We are equally excited about the opportunity to enter a promising new sales channel which includes strong regional retailers and multi-outlet franchisees utilizing Quarterhouse's flagship software suite, QPrint Pro," he said.

Developed to help printing companies move from traditional customer service to on-demand web-based service, QPrint Pro provides e-commerce and job management capabilities aiming to streamline production, stimulate sales and reduce costs. Founded in 2003, Quarterhouse reported revenues of approximated $430,000 in its last fiscal year.

PNI Digital Media launched in 2001 and offers a range of on-demand personalized products for retailer use, including stationery, online photo centres, business printing and kiosk software. Its clients include Walmart, Costco, Walgreens, CVS and Rite Aid.