Flipboard will integrate Zite’s personalisation technology and recommendation engine.
Flipboard, a popular app that aggregates content from web and offer them in a magazine style for the readers to flip through, has acquired rival service Zite from CNN.
Both the companies have not disclosed the size of the deal, but some reports from CNN said that the deal value could "reach as high as $60m".
Flipboard said it will integrate Zite’s personalisation technology and recommendation engine to improve the personal magazine.
In addition to the acquisition, both the companies will forge a partnership allowing CNN to expand its mobile reach to a new audience and take advantage of Flipboard’s technology and mobile sales strategy.
Flipboard CEO Mike McCue said by bringing the Zite team and technology to Flipboard, even more personalised experience will be delivered to every Flipboard reader.
"By partnering with CNN we can provide the world-class news our audience expects and expand our global coverage in a significant way," McCue said.
"Together we will continue to pioneer how people read and share the content they care about and give Flipboard readers even more of what they want, all in one place."
As part of the content deal, Flipboard and CNN have partnered to offer CNN’s reporting, video and photography to the Flipboard readers.
CNN Digital SVP & GM KC Estenson said the app was more than a leader in mobile reading, Flipboard has created an incredibly immersive and valuable advertising experience.
"By tapping their expertise, we will create new revenue opportunities and expand CNN’s already massive mobile audience," Estenson said.
Time Warner owned CNN had acquired Zite for $20m in 2011 which is a mobile app offering similar service as Flipboard.
Following the acquisition the existing Zite apps for Android, iOS and Windows Phone platform will continue to be there for some time.
Zyte co-founder and CTO Mike Klaas said, "I don’t want this to be the type of acquisition announcement that glosses over all bad news, and there is some: the Zite app is not going to be around forever."
"Our goal is to get the things that are great about Zite into Flipboard before shutting it down. We will also build a way for you to transition your data from Zite into Flipboard. Until then (for six months at a minimum), we will continue supporting Zite."