Google gobbles up

Google announced that it has acquired Applied Semantics, a Santa Monica, Ca.-based company known for its semantic text processing technology. Both companies are privately held and terms of the deal were not disclosed.

Google said that Applied Semantics' products and engineering team will strengthen Google's search and advertising programs, including its “fast-growing, content-targeted advertising offering,” and will enable Google to grow its engineering presence and recruiting efforts in Southern California.

Most of Applied Semantics’ 45 employees reportedly will continue working in the Santa Monica location, which will become Google’s Southern California product development center. Google is said to more than 800 employees worldwide and said it recently opened an East Coast engineering office in New York City.

The acquisition serves to heighten the competition between Google and Overture partnership with Applied Semantics. That arrangement is likely now in jeopardy, though the companies would not comment. The contract is reportedly set to expire in August 2003.