Yahoo said it plans to buy New York based online-advertising technology company Interclick for nearly $270m in cash, in an effort to boost its data-targeting and optimisation capabilities.
As per the bid, Yahoo is offering Interclick shareholders $9 a share.
The acquisition is expected to help Yahoo in warding off digital-ad sellers who buy ad space on Yahoo websites and sell it to advertisers for a much higher price.
According to an industry expert, this move will help Yahoo to have better data to understand its ad space worth and sell it for a higher price via an automated system.
The acquisition is expected to enable Yahoo to compete with Google and Facebook in the display advertising market.
The Interclik’s acquisition comes at a time when the Yahoo is conducting strategic review of its assets and looking for a new CEO, following the firing of former CEO Carol Bartz in September.
Founded in 2006, Interclick designs tools to help marketers target online customers and had about $53m in the first half of 2011.
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Yahoo expects that the deal will be close by early next year.
