Digital Window owns subsidiaries including Affiliate Window, one of the UK's biggest affiliate networks and Shop Window, a product comparison engine. It will incorporate Buy.at to become the UK's largest affiliate network.
AOL acquired Newcastle-based Perfiliate, the business behind Buy.at in February 2008 for $125m. The business was run out of AOL's advertising division.
Around 18 staff from AOL's Buy.at London-based office will move to Digital Window's office in London's E1 from tomorrow, while 42 staff members from Buy.at's Newcastle office will stay in place. A number of staff have also taken voluntary redundancy under the agreement.
In 2009 European media companies Axel Springer and Publigroupe, which owns one of Europe's leading affiliate networks, Zanox, acquired a 50.1% stake of Digital Window.
An AOL spokesman said: "AOL is focused on building the world's best products and services, including great content and brand advertising platforms. Since July of last year, AOL has been focused on executing its strategic initiatives. As part of that execution plan, we are reviewing the list of AOL assets as they relate to the core strategy.
"We remain committed to our employees and providing the best products for our users, advertisers and partners.
"[Social network] Bebo and [video search product] Truveo are still part of the AOL family."