SMS ad network mSnap has been gobbled up by SmartReply, a privately-held company that provides retailers with phone and e-mail marketing services, expanding the latter’s mobile offering significantly in the U.S.

The terms of the transaction remain largely undisclosed, although we’ve learned Partech International and First Round Capital – both shareholders of mSnap with investments totalling about $6 million – will get a minority stake in SmartReply as part of the deal.

mSnap, founded in 2001, claims to operate the largest SMS advertising network in the U.S. with 1,150 media partners (primarily radio and print) and the ability to “reach over 200 million mobile subscribers per week”. SmartReply, itself founded in 2001, was looking for ways to expand its foothold in mobile marketing and likely benefited from the current economic downturn to snap up the mobile advertising startup at a reasonable price.

Expect more consolidation in this space for 2009.