Yahoo reportedly paid $200m-$300m.
Yahoo has acquired app analytics firm Flurry, to boost its mobile ad based business and expand to its existing 450 million mobile monthly user base.
Yahoo plans to use the data gathered by Flurry to better target digital advertising and venture beyond its own platform to boost sales for other publishers.
Neither company disclosed the financial details but reports claim that Yahoo paid about $200-$300m for the deal.
The Internet firm last week reported that its profits fell by 18% in the second quarter, but the companies search revenue and mobile display grew more than 100% year-on year in the second quarter of 2014, indicating its strong presence in mobile market.
Yahoo's rival, Twitter, acquired MoPub and Facebook bought LiveRail in an attempt to boost their mobile based businesses.
Flurry CEO Simon Khalaf said: "As part of Yahoo, Flurry will continue to serve the application developer community in the way we always have, only better.
"With Yahoo, we will have access to more resources to speed up the delivery of great products that can help app developers build better apps, reach the right users for their apps and more importantly, make money from ads that look great and blend into the app experience."