Google acquires Labpixies to develop applications

Google recently announced its acquisition of an Israel-based startup that specializes in the development of mobileweb applications and internet widgets.

The Labpixies acquisition was valued at $25 million, according to TechCrunch. Previously, the company has produced widgets for iGoogle, Facebook applications, and MySpace games.

In a message posted on the Google Code Blog, iGoogle's Don Loeb says that Labpixies developers can add value to Google offerings across the board.

"We are looking forward to working with Labpixies to develop great web apps and leverage their knowledge and expertise to help developers and improve the ecosystem overall," says Loeb. "The team will be based in our ever-growing Tel Aviv office and will anchor our iGoogle efforts across Europe, the Middle East, and Africa."

TechCrunch says Labpixies is a good buy because of its ability to take its games and re-produce versions of them across an array of mobile and social media platforms. The publication says Google may use Labpixies applications first for iGoogle and then mirror their efforts for Google's mobile platform Android.

The announcement comes as Google increased its marketing services for local businesses. Google Places was recently re-branded to allow local business owners without a website to enter their company data into an index for its search engine and Maps application, according to MediaPost.