Google today announced that it has signed a definitive agreement to acquire AdMob, a mobile display ad technology provider, for $750 million in stock.

This acquisition will enhance Google's expertise and technology in mobile advertising, while also giving advertisers and publishers more choice in this growing new area.

"Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time," said Susan Wojcicki, Vice President of Product Management at Google. "AdMob is the quintessential Silicon Valley startup ? generating impressive year on year revenue growth ? and we're excited to welcome this talented team to Google."

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats.

Both companies have approved the transaction, which is subject to customary closing conditions.