Ad tech giant AppNexus has been acquired by telecommunications company AT&T, reportedly for over a billion dollars as the US-based firm looks to bolster its programmatic advertising capabilities.

Terms of the deal were not disclosed but a recent report suggested that the acquisition was placed at $1.6 billion and comes following AT&T’s buyout of TimeWarner for nearly $85 million – with the firm continuing to strengthen its presence in the TV sector.

AppNexus which provides a selection of tools to measure engagement and optimise the performance of ads will be integrated across AT&T’s existing advertising and analytics.

The company also aim to build and bring new capabilities to market that will improve the value of robust ad-supported premium video content across its portfolio – which includes Turner Networks, Audience Network and Otter Media.

The transaction is expected to close during the third quarter of 2018, with each company continuing to operate independently afterwards.

“The combination of AT&T advertising & analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today,” said Brian Lesser, CEO of AT&T.

“Innovation is core to the heritage of both AT&T and AppNexus, and we have an exciting opportunity to chart the future course of advertising together,” commented Brian O’Kelley, CEO, AppNexus; “Combining AT&T’s incredible assets with our technology, we will help brands and marketers power new advertising experiences for consumers. It’s what the market is asking for, and together we’re poised to deliver it.”