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Seattle based startup Picnik that provides an online photo editing tool, has announced its deal with SmugMug, the online photo site. According to the agreement the prior’s photo editing tool will be integrated with the later. Currently SmugMug contains over 300,000 paying customers. Last month Picnik attracted over 18 million users including 5.6 million unique visitors. Other than the current deal, Picnik has also made agreements with other sites such as MySpace, flickr, Facebook, photobucket, Picasa, etc.