NEW YORK (AP) — Internet company Yahoo Inc. has agreed to buy online advertising network Interclick Inc. for $270 million in cash.
The deal announced Tuesday is expected to help Yahoo target advertisements to its online audience.
Interclick's technology will allow Yahoo to "to expand its targeting and data capabilities to deliver campaigns" more effectively, Yahoo said.
Yahoo, based in Sunnyvale, Calif., agreed to pay $9 per share for Interclick, a 22 percent premium to Interclick's closing stock price on Monday. New York-based Interclick's board approved the deal.
Yahoo and Interclick expect the deal to close by early next year.
The acquisition comes as Yahoo itself is the subject of takeover speculation. The company has been struggling to grow its revenue even as rivals such as Google Inc. and Facebook — and overall Internet advertising — are doing just that.
The company fired Carol Bartz as its CEO about two months ago. Since then, its board has been assessing whether it makes more sense to auction off the company instead of hiring a permanent replacement for Bartz.
Shares of Yahoo fell 76 cents, or 4.9 percent, to $14.88 in midday trading. The stock has traded in the 52-week range of $11.09 and $18.84.
Interclick's shares, meanwhile, rose $1.54, or 20.8 percent, to $8.94. The stock earlier hit a 52-week high of $8.99.