Dulles, Va. - Looking to lure a larger number of display ads to its network, AOL said on Tuesday that it will acquire New York-based Tacoda, a developer of technology that lets advertisers target consumers based on their online behavior.

Though financial terms of the deal weren't officially disclosed, Reuters, citing a "person familiar with the situation," reported the purchase price as $275 million in cash.

AOL said that the acquisition of Tacoda, which has about 100 employees and will operate as a subsidiary, will allow it to extend the reach of its third-party display network, currently the largest in the U.S.

AOL built its ad network largely on the acquisition of Advertising.com in 2004.

Related Links:
http://press.aol.com/article_display.cfm?article_id=1270&section_id=14   

http://www.reuters.com/article/mergersNews/idUSN2440600620070724   

http://www.tacoda.com