Digitalsmiths announced today that it has acquired Gotuit Media Corp., a Massachusetts start-up that provides metadata tagging services for the makers of news and sports content.

Digitalsmiths plans to keep open Gotuit's office in Woburn, just outside Boston.

The merged company will have about 60 employees, with 35 based in the Triangle. Terms of the deal weren't disclosed.

Digitalsmiths video search system is primarily used by film studios and websites.

Gotuit offers Digitalsmiths an entrance into a new market and valuable intellectual property, said Matthew Berry, one of Digitalsmiths co-founders and its chief technology officer.

Gotuit's customers include ESPN, Fox, Sports Illustrated, Turner and Sprint. Those companies use the company's products to insert metatags into video scenes for use by consumers or advertisers.

The company owns 21 patents, and will bring the total number of patents owned by Digitalsmiths to 35.

Ben Weinberger, Digitalsmiths CEO, will be CEO of the two companies, which will operate under the Digitalsmiths name.

Gotuit CEO Mark Pascarella will sit on Digitalsmiths' advisory board.

Digitalsmiths, a 35-employee startup whose video search system is used by film studios and websites, is moving from Morrisville to American Tobacco Campus in downtown Durham.

The company has signed a long-term lease for about 7,000 square feet in ATC, said Matthew Berry, one of the company's co-founders and its chief technology officer.

The company will move into its new space over the Thanksgiving break.

Berry said Digitalsmiths considered locating in American Tobacco three years ago, when the company moved to the Triangle from South Carolina, but couldn't make it work.

Digitalsmiths is one of many companies that has used the economic downturn as an opportunity to move into nicer, more higher-profile office space.

"There's certainly something to be said about the ability to recruit high-level talent and just being where they want to work and being around like-minded people," Berry said of American Tobacco.

Paramount Pictures this morning unveiled an online video clip service using technology developed by Morrisville-based Digitalsmiths.

The company's VideoSense system allows films to be searched by actor, line of dialogue, location, genre or product, the New York Times reports. Paramount, like other film studios, is looking for new ways to turn old movies into cash and plans to sell video clips to business customers such as advertising agencies or foreign broadcasters. Eventually, the studio expects to open the site (Paramountclips.com) to consumers, the newspaper reported.

For Digitalsmiths, founded in 1998 by CEO Ben Weinberger and chief technology officer Matthew Berry, the deal elevates the company's presence in the important Hollywood market. In September, the company hired three new employees for a Los Angeles office.