Google said in a Tuesday blog post it had closed the long-anticipated deal. It now planned on using Waze's service to enhance its own Maps product, but did not say how much it paid.
Maps and navigation services have become vital for technology companies as consumers adopt smartphones and other mobile devices. Waze uses satellite signals from members' smartphones to generate maps and traffic data, which it then shares with other users, offering real-time traffic info.
Waze's product development team will remain in Israel and operate separately for now, Google said. Eventually, its service will also serve to enhance the U.S. company's Maps app, while the core Waze product itself will benefit from integrating Google-search capabilities.
Google's acquisition ranks among the largest purchases of an Internet company this year as technology deals begin to heat up. Last month, Yahoo Inc closed a $1.1 billion acquisition of blogging service Tumblr.
In a separate blogpost, Waze Chief Executive Noam Bardin said his company decided to forego the typical initial public offering route for startups, because it wanted to focus on the product.
"Choosing the path of an IPO often shifts attention to bankers, lawyers and the happiness of Wall Street," said Bardin, who is based in Palo Alto, California along with a small staff. "We evaluated many options and believe Google is the best partner for Waze."
Maps are among the five most-used applications on smartphones and tablets, along with music and games. Analysts say Google might have been motivated by a desire to keep Waze and its real-time traffic information out of rivals' hands.
Source: Reuters
