Internet search biggie Google Tuesday announced the acquisition of its first Israeli startup – the Web and mobile applications publisher Labpixies; a company which was among the first firms to create customizable Web gadgets for iGoogle personalized home pages in 2005.

Though there has been no official disclosure about the financial aspects of the Google-Labpixies deal, it is being estimated that Google paid nearly $25 million for the acquisition of LabPixies.

The 2006-founded Labpixies, which develops a wide array of software gadgets including calendars, news feeds, to-do lists, entertainment and games, was not financed by venture capital; however, the firm has backing of some private US investors.

Noting that the acquisition will provide both Google and Labpixies the chance to learn from each other and bring more apps to users, Labpixies said that the move will “help developers and improve the overall developer ecosystem.”

About the Labpixies’ acquisition, iGoogle team’s Dan Loeb said in a blog post: “Over the years, we worked closely together on a variety of projects, including the launch of a number of global OpenSocial 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.”

Loeb revealed that the Labpixies team, which will be based in Google's Tel Aviv office, will chiefly focus on iGoogle efforts across Europe, Africa, and the Middle East.