Both companies offer similar pay-per-click online advertising, which allows advertisers to pay only for those internet users who visit their sites from a search engine request.
has operations in 10 European countries including the UK, while covers the US market.
Daniel Ishag, founder and CEO of Espotting, said: "The combination will allow the two companies to bring together the best of their respective talents. We believe this will help enhance the expert local knowledge they each bring to their respective markets, rewarding advertisers with increased ability to achieve greater reach through one company."
Following the merger, which is subject to shareholder approval, the combined company will be responsible for 2.25bn queries to advertisers' websites each month. Espotting shareholders will own 30% of the company.
The deal has been unanimously approved by the board of directors of both companies. The deal will see Espotting shareholders receive 8.1m shares of FindWhat.com common stock and around 拢27m in cash, depending on the value of Espotting's audited net assets and losses.
Espotting was founded in February 2002, making it slightly younger than Findwhat.com, which launched in 1999.
Espotting operates a marketplace where advertisers bid against each other for prominence in its search listings. The higher they bid, the higher they are listed. Advertisers then only pay on the number of click-throughs they receive.
As well as the UK, Espotting has operations in Germany, France, Spain, Italy, Sweden, Denmark, Norway, Ireland and Switzerland. It claims to provide measurable and low-cost advertising to 16,000 clients.
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