AOL is set to pay $405m video advertising platform Adap.tv for $405m.
The acquisition is expected to be completed in the third quarter of 2013.
Under the agreement, Adap.tv will operate independently as part of AOL’s video organisation, which is led by Ran Harnevo, SVP.
Adap.tv will be included as part of the overall solution offered by AOL Networks to its publisher and advertiser partners.
AOL will have access to global programmatic video technology stack and yield management platform, which are used for publishers and advertisers.
Last year, Adap.tv supported over 26,000 global ad campaigns, which ran on 9,500 websites.
Adap.tv CEO Amir Ashkenazi said the company believes that most TV advertising will soon be traded on platforms programmatically.
"The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising," Ashkenazi said.
AOL chairman and CEO Tim Armstrong added: "AOL is a leader in online video and the combination of AOL and Adap.tv will create the leading video platform in the industry.
"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."
In 2011, AOL acquired news, analysis, and lifestyle website, The Huffington Post, for $315m.
