Google has just announced that it has acquired Israeli development studio LabPixies for a rumoured $25 million. Best known for games like Flood-It! and Line Up, LabPixies has provided games and other applications to a variety of platforms in recent years including Facebook, MySpace, and the iPhone.

Being among the first developers to provide gadgets and games to iGoogle, Orkut, and Android, LabPixies and Google have clearly had something of a history prior to the acquisition. Don Loeb of the iGoogle Team discussed the acquisition in a recent blog post;

“One of the first developers to create gadgets for iGoogle wasLabPixies. Over the years, we worked closely together on a variety of projects, including the launch of a number of globalOpenSocial based gadgets. 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. 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. 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.”

What impact this acquisition will have on LabPixies activities on platforms in competition with Google, like Facebook and the iPhone, has yet to be confirmed.