MoPub software is utilised by over 45,000 mobile apps to manage monetisation and reaches 1.5 billion addressable users worldwide.
AppLovin stated that it intends to MoPub’s reach and features into its existing mobile ad platform to better maximise revenue growth and improve efficiencies.
Throughout 2020, MoPub generated $188 million in revenue for Twitter which represents nearly 5.9 per cent of the company’s advertising revenue for 2020.
The deal is expected to close next year, with the closing of the transaction subject to customary conditions and regulatory approvals.
"We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetisation tools through this strategic transaction," said AppLovin co-founder and CEO Adam Foroughi.
"We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform."
Commenting on the sale of MoPub, Twitter CEO Jack Dorsey added: "This transaction increases our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in the core products that position Twitter for long-term growth and best serve the public conversation.
"We thank the incredible teams and customers who have contributed to making MoPub a success within Twitter over the years."
Earlier this year, AppLovin formalised its IPO via the NASDAQ exchange at a valuation of $29 billion and raised $2 billion through the sale of 25 million shares.