AOL Inc. (NYSE: AOL) is set to buy Adap.tv, which helps businesses buy and sell ads for online video electronically, for $405 million. The price tag breaks down to about $322 million in cash and roughly $83 million in stock.

Adapt.tv develops software that serves targeted advertisements to online video users and provides a marketplace of ad buyers and sellers. Founded in 2007 and headquartered in San Mateo, Calif., Adap.tv had raised nearly $50 million from venture capital firms, including Bessemer Venture Partners, Gemini Israel Funds, Redpoint Ventures and Spark Capital.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.