Facial animation firm Image Metrics is announcing today that it has acquired FacePro to make lip-synching services for video games and movies more affordable.

Terms of the deal were not disclosed. Santa Monica, Calif.-based Image Metrics, which is publicly traded in the over-the-counter market, has acquired Idaho-based FacePro and will integrate its tools into Image Metrics’ portfolio of animation services.

Image Metrics makes it easy for game developers and film animators to create realistic animated human faces. It essentially captures an artist’s facial movements during a performance on video and converts it into an animation. Artists can then manipulate the animation for use in a game or movie. FacePro software can automate lip syncing, so that the lips of an animated character can automatically move as needed when the character is speaking certain words.

Michael Starkenburg, chief executive of Image Metrics, said that making life easier for customers drove the deal. Often, Image Metrics would win a customer who wanted a high-end facial animation. That same customer would go to FacePro for lower-cost, low-end lip syncing technology. Now those customers can turn to the same vendor. That can improve the efficiency and reduce the cost of animation services, Starkenburg said.

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Back in March, Image Metrics went public through a reverse merger and raised $8 million in funding. It has used that capital to buy Character-FX and now FacePro. Image Metrics is focused on developing a suite of solutions for its customers. Rivals include Mova and others doing similar body-capture technology, such as Big Stage Entertainment and Organic Motion. Rod Stafford, founder of FacePro, has joined Image Metrics as audio animation lead.

Image Metrics was founded in 2000 and has invested more than $14 million and 60-man-years into its technology. Its clients include a who’s who of game publishers: Activision-Blizzard, Bethesda, Electronic Arts, Sega, Sony Computer Entertainment, Take Two Interactive, Ubisoft, and Warner Brothers.  A sampling of projects includes: The Curious Case of Benjamin Button– Feature Film (2008 Academy Award for Best Visual Effects); Grand Theft Auto IV; Assassin’s Creed II; NBA2K10; Rock Band 2; God of War III, Blur, Red Dead Redemption and the music video for the Black Eyed Peas’ Boom Boom Pow song. The company has 58 employees, while FacePro has just a few.  To date, the company has raised $9 million.

In the second quarter, Image Metrics reported revenue of $1.6 million, up from $200,000 a year ago. First half revenue was $4 million, up 154 percent from $1.6 million a year earlier. The net loss in the second quarter was $2.8 million, compared to a loss of $2.5 million a year earlier.

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