AOL has reached an agreement to purchase Adapt.tv, a programmatic video advertising platform, in a move the Internet company says will "create the most powerful cross-screen solution for brands, agencies and publishers".
The deal is worth a total $405 million (£261 million), made up of $322 million (£208 million) in cash and $83 million (£53.5 million) in AOL common stock.
AOL hopes that the acquisition will boost its advertising credentials so the company can provide a complete end-to-end solution for clients.
For the last three years the company's revenue has grown 100 per cent annually. Last year Adap.tv leant its services to over 26,000 ad campaigns, which ran on around 9,500 websites.
"Two trends are prevalent in the video space right now – the movement from linear television to online video and the shift from manual transactions to programmatic media buying. Adap.tv is positioned squarely in front of the huge opportunity these trends are presenting," said Tim Armstrong, Chairman and CEO of AOL.
"We believe that most TV advertising will soon be traded programmatically on platforms like ours. The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising," added Adap.tv CEO Amir Ashkenazi.
The purchase is expected to close by the end of the this quarter. Adapt.tv will continue to operate independently under the umbrella of AOL's video organisation.