Google Inc. agreed to acquire Red Hot Labs Inc., a mobile startup that helps companies manage advertising on rival Facebook Inc., bolstering its marketing tools on wireless devices.
Red Hot Labs, which provides the Toro service for application developers, will join the mobile ads team at Google, the search giant said, declining to disclose terms of the deal. San Francisco-based Red Hot Labs helps software makers boost their user numbers through Facebook, owner of the world’s largest social-networking service.
“With greater resources and distribution now available at our disposal, we’re excited to join Google and continue our mission of making the lives of app developers easier,” the start-up said on its website.
Google, expanding beyond its desktop-based tools, is investing in new ways to help companies market on smartphones and tablets as users increasingly access digital services via wireless devices. The Mountain View, California-based company last month reported fourth-quarter sales and profit that missed estimates as its advertising business faced more competition on mobile gadgets.
Red Hot Labs was founded in 2012 by former employees at Zynga Inc., a gaming company. Investors included Andreessen Horowitz, Greylock Partners and General Catalyst.
Bloomberg LP, parent of Bloomberg News, is an investor in Andreessen Horowitz.