Google Acquires Web Game Developers LabPixies

Google announced today that they have acquired casual games developers LabPixies, who make games for Facebook, MySpace and the iPhone. The company is based in Israel and the acquisition is rumored to have cost Google $25 million. LabPixies has worked closely with Google on creating iGoogle games and gadgets, and this acquisition is also meant to strengthen the development power of Google’s Tel Aviv offices.

Although information about what exactly LabPixies will be doing is still slim, the fact that the team has worked with closely with iGoogle makes me suspect they may be helping to create better iGoogle gadgets.