April 29, 2010, Updated September 24, 2012

Google announced early this week that it has signed an agreement to buy Israeli startup Labpixies for an estimated $25 million. The search engine giant hopes that the move will strengthen its search pages through the development of Web site gadgets that should attract more users.

The acquisition is the first-ever deal Google has made in Israel since it opened its R&D center in the country in 2005. Google says that the deal is a strategic step for the center.

Founded in 2006, Labpixies creates interactive gadgets, also known as ‘widgets,’ for web environments.

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