Google buys Israeli LabPixies, a leading publisher of web and mobile applications such as calendars, news feeds, to-do lists, entertainment and games.

Googøe and LabPixies have worked together since 2005 and LabPixies built several of the features of the Google service iGoogle . The company has also developed a bunch of applications for Android, iPhone and social sites like Facebook and MySpace. The price of the deal is not not clear, but the Israeli newspaper Haaretz estimates the deal to 25 million U.S. Dollars.

Among LabPixies mobile and web applications we find games like Flood-it! 2, Line-Up 2 and tools like My Stock Portfolio and Travelocity.

The following announcement was released by Google:

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.