Google to buy Russian contextual ad company

Internet search leader Google said the deal is part of its moves to improve service for users, partners and advertisers in Russia, which has a fast-growing digital advertising market.

The purchase will enable advertisers to advertise on a larger network of sites, and publishers will get more advertisements to run on their sites, Google said. The acquisition will also result in users viewing more relevant ads on more sites.

"This agreement will result in better search results and more relevant advertising for our Russian users and publishers," said Mohammad Gawdat, Google's managing director for emerging markets, in a statement.

Google expects the deal to close in the third quarter.

Shares of Google fell $53.63, or 10 percent, to $479.81.