Yahoo has agreed to buy European online comparison shopping service Kelkoo for about 475 million euros (294 million pounds) in cash to expand its Internet services for marketers and consumers.

Yahoo on Friday said the cash payment for up to 100 percent of Kelkoo's share capital could be subject to certain adjustments as part of the deal which it expects to close in the second quarter this year. It does not expect to reduce the workforce of 250 at Kelkoo, which will become a subsidiary of Yahoo.

Yahoo buys Kelkoo