NEW YORK (AP) -- AOL said Thursday that it reached a deal to buy Web content personalization company Gravity for an initial price of about $83 million.
As part of the deal, $7.7 million will be deferred and paid over two years after the deal closes. AOL said it also will acquire about $12 million of net operating losses, which is expected to result in a future cash tax benefit of $5 million.
The deal is expected to close in the first quarter of 2014.
Gravity helps personalize the Internet experience by applying a customized filter to the continuously growing volume of digital information. Its technology creates interest graphs based on individuals' interests, preferences and habits and allows publishers to offer readers a customized selection of editorial and advertising content.
AOL said the addition of Gravity will help it create more engaging, relevant and valuable experiences for consumers, advertisers and publisher partners.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.