Private Equity Hub is reporting that AOL has finally completed the acquisition of online advertising company Quigo. Quigo is a provider of contextual advertising on third-party publisher Websites, much like AdSense and Yahoo Publisher Network. The company offers a variety of different advertising formats including text, banners, and video, and sells them on a CPC, CPM, or “cost per time” basis.
Financial terms of the deal were not publicly disclosed, though we've previously published reports that the sale is said to be around $340 Million. Quigo will become part of AOL’s “Platform A” group, which is focused on unifying the company’s many online advertising divisions, which include Advertising.com, Tacoda, Adtech, and others. Quigo is expected to bring in $100 million a year as it stands.
Now that the acquisition is final, and AOL is showing intentions to actually do something with a company it purchased, the unification strategy could actually work to make them a significant player in the online ad world in the face of the present dominant force of Google.
Quigo's original backers include Highland Capital, Institutional Venture Partners and Steamboat Ventures (a Walt Disney company).