UPDATE: Microsoft strengthens digital ad offering with acquisition

Global - Microsoft is acquiring AdECN, an advertising exchange platform company, to develop a comprehensive search and display advertising platform for advertisers and publishers.

While Asian ad networks cannot connect to AdECN yet, there are plans to expand the exchange out to Asian markets in the future.

AdECN operates as a hub where advertising networks are able to come together in a neutral, real-time auction marketplace for buying and selling display advertising.

"Both Microsoft and AdECN have a deep commitment to creating the technologies and platforms that enable advertisers and publishers to maximise their ROI in the digital marketplace - the addition of AdECN to the Microsoft portfolio will create more efficiency for the industry by forming a robust marketplace between advertisers and publishers, aggregating more supply and demand," Kevin Johnson, president, Platforms and Services Division at Microsoft said.

"Joining forces with Microsoft will provide the capital and resources to enable AdECN to scale the exchange at a much faster pace, making it more attractive to the advertising networks and other traffic aggregators looking to better serve their advertisers and publishers," William Urschel, founder and chief executive officer, AdECN said.

The acquisition is expected to be completed in the first half of Microsoft's fiscal year 2008; AdECN will continue to operate from its headquarters in California as part of Microsoft's Online Services Business.