Urban Airship has acquired location-based service provider SimpleGeo, in a deal worth $3.5 million.

The two companies had formed a strategic partnership back in July 2011, wherein SimpleGeo would provide what it called 'Amazon Web Services for location', enabling developers to easily build location-enabled web and mobile apps.

SimpleGeo will now operate under the Urban Airship name, with its San Francisco office working alongside Urban Airship's Portland HQ, with total headcount jumping from 38 to 51.

Its former bosses Jay Adelson, Matt Galligan, and Joe Stump will remain as advisors.

1+1=3

"We've been working with SimpleGeo for months now and knew that putting the two companies together would create a powerhouse as a one-stop-shop for developers and marketers to build, monetise and measure the success of their apps in the ecosystem," explained Urban Airship CEO Scott Kveton. 

He pointed to the acquisition enabling the combined operation to offer a complete mobile engagement platform, bringing together push notifications, in-app purchasing, subscriptions, context and geo-location together. 

[sources: SimpleGeo and Urban Airship]