Tagged has acquired Topicmarks in the hopes of improving its friend suggestions. Josh Constine reports, “Tagged’s mission is to help strangers meet each other online, so it has to offer friend suggestions of people you’ll like and who’ll like you back. That’s why it acquired Topicmarks, a natural language processing and machine learning company. Topicmarks will allow Tagged to analyze the profiles of its 100 million registered users and match them with others with similar interests and vocabulary. Topicmarks’ technology, CEO, CTO, and 3 senior engineers will join Tagged in exchange for cash and stock. Its existing service will remain active for the foreseeable future.”

Constine adds, “Tagged’s CEO Greg Tseng tells me the acquisition price was “somewhere in the middle” between covering Topicmarks’ $150K in seed funding and significantly impacting his online gaming and meeting network’s bottom line. Apparently it wasn’t just a graceful, low-payout exit for Topicmarks as many suspect Facebook’s acquisition of Gowalla was. Tagged has been profitable for four consecutive years thanks to its 10 to 20 million monthly active users. It grew from 50 to 150 employees this year, including 17 from acquisitions of Topicmarks, game discovery platform WeGame, and social messaging client Digsby. One Topicmarks employee won’t be joining the Tagged.”

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Image: Courtesy Tagged