Google makes first ever acquisition in Israel
LabPixies develops web site gadgets for personalized web page iGoogle, as well as iPhone and Android devices.
Google Inc. (Nasdaq: GOOG) has made its first ever acquisition in Israel - LabPixies Ltd., a developer of personalized web site gadgets for Google's personalized search page iGoogle, as well as for mobile devices. The companies did not disclose the size of the deal, but sources estimate it at $25 million.
LabPixies, which has 12 employees, will be absorbed by Google Israel.
LabPixies' gadgets provide user information, such as news and weather reports, games, and quick access to e-mailboxes. Google says that it acquired LabPixies because it specializes in the development of cloud-based applications enables thousands of developers to create applications for users worldwide, which will strengthen the iGoogle product.
LabPixies CEO Ran Ben-Yair, VP R&D Oded Poncz, VP business development Nir Tzemah, and creative director Udi Graff founded the company in 2006. The company's customers include "The New York Times".
LabPixies raised $1 million from private investors.
Google Israel managing director Prof. Yossi Matias said, "We welcome LabPixies' team to the Google Israel R&D center. We believe that adding this talented team to the center will enable us to continue to strengthen the Internet platform, and make it more attractive than ever for developers and surfers worldwide. Google believes in Israeli innovation and creativity, and we'll continue to strive for collaborations with local companies and start-ups in the future."