AOL announced on Thursday that it has signed an agreement to acquire Millennial Media Inc.

According to  AOL, the company has invested in Millennial Media in the past and continues its efforts by signing the agreement for $1.75 per share of the leading end-to-end mobile platform's common stock.

Thursday's announcement further strengthens AOL's capabilities. The global media technology company was previously acquired by Verizon and started a global enterprise-level partnership with Microsoft.

With its new business ventures, AOL now operates a subscription services platform. It also operates scaled global content brands, content delivery network and a programmatic advertising platform.

"AOL is well positioned as consumers spend more and more time on mobile devices, and as advertisers, agencies and publishers become more reliant on programmatic monetization tools," said Bob Lord, president of AOL.

"As we continue to invest in our platforms and technology, the acquisition of Millennial Media accelerates our competitive mobile offering in ONE by AOL and enhances our current publisher offering with an 'all in' monetization platform for app developers."

AOL will develop new features with the acquisition of Millennial Media including adding world-class engineering, sales and product talents that specialize in mobile to AOL. The company will also accelerate its mobile position in key international markets like Singapore, Japan, U.K., France and Germany.

"By joining AOL, we will be adding additional mobile expertise to AOL's growing technology assets," said Michael Barrett, president and CEO of Millennial Media. "I am excited by what this acquisition means for our shareholders, our employees and our partners."

Meanwhile, AOL has been conducting research on how to appeal to millennials through advertising. Its latest research sought to uncover insights on millennial behavior.

AOL learned that the best ways in communicating with millennials is to be "digital first" in mobile communication strategies, constantly show them something new and lead with millennial's values and views in order to gain their loyalty.