AOL buys Highland investment, Quigo

The Internet company AOL announced today it has agreed to buy Quigo, a content-targeted advertising company, for an undisclosed amount.

Highland Capital Partners, a venture capital firm with offices in Lexington, is a major investor in Quigo; Highland managing general partner Bob Davis, a former chief executive of Waltham-based search portal operator Lycos Inc., counted Quigo as one of his marquee investments, Highland said.

AOL said the acquisition of New York-based Quigo will allow it to match ads to the contents of a Web page.

AOL said that Quigo will be its fourth acquisition of an advertising company this year.

AOL recently acquired Boston's Third Screen Media Inc., which enables advertising on cellphones.

AOL is part of Time Warner, a New York-based media and entertainment company.
(By Chris Reidy, Globe staff)