Santa Clara, California-based Software Publishing Corp, best known for its Harvard Graphics line these days, has acquired Digital Paper Inc, Cupertino, California developer of visual communications software technology, for $5m cash upfront with an earn-out of up to $1.5m if pre-set targets are met over the next three years. Digital Paper develops applications designed to enable people to communicate and share information more effectively using electronic mail, on-line services, conferencing and personal information devices. The company’s technology examines a user’s text-based information, and automatically determines what the program designers decree is the optimal layout and colour scheme. Component-based architecture is also designed to enable users to send their visual ideas back and forth to decide how best to communicate their messages. Software Publishing will take a $4.7m hit against its figures for the March quarter.