Wednesday's deal comes nearly three years after the Wall Street Journal reported that photo and video messaging app Snapchat had rejected an offer from Facebook.
Masquerade, which announced the deal on its website, did not disclose financial details.
The deal is more a piece of Facebook's bigger effort to innovate into video, Monness, Crespi, Hardt, & Co Inc analyst James Cakmak said.
It is unlikely that Facebook would use Masquerade to significantly draw away Snapchat users, he said.
While Snapchat has features such as bulging eyes, Masquerade allows users to add special effects including animal masks and snow to their photos and video.
Masquerade, backed by Yuri Gurski and Gagarin Capital, said founders Eugene Nevgen, Sergey Gonchar and Eugene Zatepyakin will join Facebook.
The app will continue as a standalone product, Masquerade said.
© Thomson Reuters 2016