Smart Online, which provides a variety of software-as-services for small- and medium-sized businesses, is acquiring an Iowa-based firm.

The deal is worth some $4.23 million in Smart Online stock based on its Wednesday closing price of $8.75 per share.

Smart Online (OTCBB: SOLN) said it was issuing 484,213 shares to acquire the assets of Computility, Inc., a provider of web-based sales force automation and customer relationship management solutions. Computility, which is privately, held, is based in Des Moines IA. Smart Online also assumes certain liabilities of Computility.

“Smart Online expects to retain Computility’s key employees and existing operations in Des Moines — and will continue to support Computility’s current customer base of over 2,500 subscribers,” the company said in a statement.

Smart Online sees Computility’s applications as augmenting its online platform of offerings packaged under its OneBiz Conductor platform.

Computility generated $1.03 million in revenues through June 30 of this year and $1.99 million for 2004.

Smart Online noted that its own revenues were $659,354 and $1.003 million in the same respective timeframes.

“Smart Online’s acquisition of this SFA and CRM solutions will enable us to strategically extend the functionality of our OneBiz Conductor platform, making a broad suite of integrated web-based applications for small businesses that now includes SFA and CRM applications in addition to accounting and human resource management,” said Michael Nouri, president and chief executive officer of Smart Online, in a statement. “Business customers will benefit from fully integrated daily-use applications that will enable them to drive their sales, handle customer service processes and manage accounting seamlessly through our platform.”

Smart Online: