4info acquires mobile advertising startup Butter

4info, a company that offers mobile search and text message alerts, just announced that it has agreed to acquire a mobile advertising company called Butter.

4info provides its services for free and makes money by including text and display ads. Butter, meanwhile, works with advertisers like Coca-Cola and Energizer to build customized applications for iPhone and Android devices.

“The combination of our expertise in SMS and display advertising with their application ad products and tracking technology creates a fully holistic approach to mobile advertising,” said 4info chief executive Zaw Thet in a written statement.

The terms of the deal were not disclosed, but 4info says that it will employ the entire Butter team. The acquisition is expected to close in July.

4info has raised more than $50 million in funding from backers including US Venture Partners, Draper Fisher Jurvetson, NBC Universal, Mezzanine Capital Partners, and Gannett Company. It’s headquartered in San Mateo, Calif. but also has offices in New York City, where Butter is based.

Don’t miss MobileBeat 2010, VentureBeat’s conference on the future of mobile. The theme: “The year of the superphone and who will profit.” Now expanded to two days, MobileBeat 2010 will take place on July 12-13 at The Palace Hotel in San Francisco. Register now. Tickets are going quickly. For complete conference details, or to apply for the MobileBeat Startup Competition, click here.