Google acquires Israeli game developer

Google has announced the acquisition of Isreali game developer LabPixies, currently best known for iPhone title Flood-It!

Google's interest in the company though stems from the studio's support of iGoogle gadgets, as well as a variety of Facebook, Android and other Web-based apps. iGoogle is the company's personalised home page and web portal, originally launched in 2005 and rebranded in 2007.

"Over the years, we worked closely together on a variety of projects, including the launch of a number of global OpenSocial based gadgets," said Dan Loeb on the iGoogle blog."Recently, we decided that we could do more if we were part of the same team, and as such, we're thrilled to announce the acquisition of LabPixies."

Website TechCrunch estimates that Google was likely to have paid up to $25 million (£16.5m) for the developer. The studio will be moved to Google's Tel Aviv office and oversee iGoogle development across Europe, the Middle East and Africa.

"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," said Loeb.

Although Loeb made no specific reference to games in his comments the company has been showing increased interest in the market recently, this month appointing Mark DeLoura as a "developer advocate" solely for video games.

"I personally feel that Google hiring someone specifically to focus on games is a signal from the company that they recognise the growing importance of games as a medium," said DeLoura in an interview earlier this month.