Israeli online translation company Babylon Ltd. (BBYL.TV) said Tuesday it has signed a four-year revenue- sharing agreement with portal Yahoo Inc. ( YHOO ).
Founded in 1997, Babylon is an international Internet company engaged in the development, marketing and sales of software solutions in the search and translation field. The Company is controlled by Noam Lanir, and is traded on the Tel Aviv Stock Exchange.
The two companies will share revenue from Internet advertising, including from mobile applications, Babylon said.
Although it didn’t say how much it expected the agreement to boost its bottom line by, Babylon said the agreement will result in a “substantial contribution” to its revenue.
According to the agreement, the cooperation may also be extended beyond four years.
Babylon has said 94 percent of its revenue comes from advertising. The partnership with Yahoo is the latest collaboration with US based internet companies. In 2012 Google was the main source of revenue for Babylon.
The company has said it expects strong revenue growth this year thanks to increased advertising income on the back of its plan to offer its latest product free of charge.
Babylon has filed for an initial public offering on the Nasdaq to raise $115 million, but hasn’t set a date for the offering.