"IQ Engines is joining the Flickr team at Yahoo!," the startup said on its website.
"As longtime Flickr fans and fellow photography enthusiasts, we look forward to working on improving photo organization and search for the community."
Terms of the deal were not disclosed.
IQ Engines produces software that analyse images using various techniques including facial recognition, and will now be fully integrated into Flickr.
In May, Yahoo! showed off a revamped version of its Flickr photo-sharing site, with CEO Marissa Mayer saying her goal was to make the online service "awesome again."
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The move also came as Yahoo! overtook Google last month as the number one website in the US.