AOL announced that it has entered into an agreement to acquire Gravity, developer of content optimization and personalization technology and "the Interest graph".
The deal is for $83 million, and an additional $7.7 million may be deferred and paid over two years after the closing.
AOL CEO Tim Armstrong said, “The web is moving to the era of personal, and a personal web filter will reshape how consumers get information and services. Gravity is joining AOL to lead the personalization transformation of AOL's brands and platform partners.”
Gravity CEO Amit Kapur added, "Every day we’re presented with an overwhelming amount of information to consume on our favorite websites and apps. It’s time to move beyond searching for the best content to having the best content search for you. We believe that by combining AOL’s vast brand, publisher and advertiser network with Gravity’s interest graph technology, we can do just that."
AOL says the acquisition will help it distribute relevant and engaging content and advertising across the Internet, personalize its own brands for consumers, and enable its publisher network to deliver more personalized and relevant recommendations and content. The company says it will also allow its advertisers to deliver relevant branded content to consumers based on their specific interests and when they're most engaged.
Gravity is also expected to help AOL improve its analytics and targeting and strengthen its technology infrastructure.
Gravity's executive team and engineers will work for AOL, with its product team reporting to AOL Brand Group Head of Product, Luke Beatty.
Image via Gravity