"Every day we’re presented with an overwhelming amount of information to consume on our favorite websites and apps," said Gravity CEO Amit Kapur. "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."
Gravity will bring to AOL a client base of top publishers and brands such as Sony, Intel, USA Today and GAP. Since the launch of the Gravity API last year, there have been more than one billion personalized page views per month on some of the biggest publisher sites on the web, and its technology has increased engagement by 240% compared to sites that do not have personalization.
After closing, the Gravity product and team will report to AOL Brand Group Head of Product, Luke Beatty.
AOL has agreed to acquire Gravity for a closing purchase price of approximately $83 million. An additional $7.7 million of consideration will be deferred and paid over two years following closing. As part of the transaction, AOL will acquire approximately $12 million of net operating losses, which is expected to result in a future cash tax benefit to AOL of approximately $5 million. AOL expects the acquisition to close in the first quarter of 2014.About AOL AOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a world-class collection of premium brands, AOL creates original content that engages audiences on a local and global scale. We help marketers connect with these audiences through effective and engaging digital advertising solutions. About Gravity Founded in 2009 by early-on MySpacers Amit Kapur, Jim Benedetto, and Steve Pearman, Gravity aims to personalize the Internet. Through our applications, Gravity understands people's interests so that our partners can create more relevant experiences for their users. Our goal is to build a smarter internet that helps people sift through the overwhelming amount of information on the web, while delivering a serendipitous experience that exposes them to the breadth and depth of the Internet.