Google has acquired Russian contextual advertising company Begun from Rambler Media for a total of $140 million.

Begun is currently owned by two companies: Rambler Media owns 50.1% of Begun, while Bannatyne Limited owns the remaining 49.9%. Under the terms of the deal, Rambler will first buy Bannatyne’s stake and then sell the entire company to google.

Begun is one of the leading ad services in Russia’s huge market, but knowing Google’s acquisition history, they’re probably not in it only for the market share, but also for the technology.

*Update: Svetlana Gladkova from Profy, who’s well informed on the subject, explains in a comment below and in a blog post that Begun is not only one of the leaders in Russia’s contextual ad market, it’s almost a monopoly, so market share is definitely a big reason for Google’s acquisition.

From the official PR [PDF link]:

“Rambler Media Ltd. (“Rambler” or “the Company”), operating one of Russia’s most popular internet brands, announces that it has agreed to sell its contextual advertising company ZAO Begun (“Begun”) and related subsidiaries to Google. Rambler currently holds 50.1% of Begun. The transaction will consist of Rambler buying the remaining 49.9% stake in Begun from Bannatyne Limited, affiliated with the Finam group of companies, immediately after which Rambler will sell 100% of Begun to Google subject to certain approvals and conditions precedent for a total cash consideration of US$140 million, of which US$69.9 million is attributable to Bannatyne, with customary closing adjustments.

Rambler’s net gain from the disposal is expected to be approximately US$50 million after all direct costs associated with the transaction. Proceeds received in respect of the sale of its holdings in Begun will be retained by the Company for further investments and potential acquisitions in line with Rambler’s stated strategy. The Company’s net cash position after the completion of this sale is expected to reach US$100 million. The Company’s directors consider, having consulted with its nominated adviser, ING, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.”

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