Google buying its first Israeli company

Google has acquired its first Israeli company.

Google said Tuesday that it was buying the privately backed start-up Labpixies, which develops personalized Web site gadgets for Google’s personalized search page iGoogle and mobile devices.

The deal has been estimated at $25 million. It was the first deal for Google in Israel since launching a research and development center there in 2005.

The Labpixies staff of 10 will be integrated into the Google Israel office based in Tel Aviv.

“Google believes in Israeli innovation and creativity, and we’ll continue to strive for collaborations with local companies and start-ups in the future,” Google Israel managing director Yossi Matias told the Israeli business daily Globes.