Google is on the acquisition trail again, this time planning to buy Norwegian Internet telephony firm Global IP Solutions (GIPS) in a deal that will push the Californian company further into direct competition with Skype and traditional telecom operators. Google is to buy GIPS for US$68.2 million via an all-cash deal, a sum that represents a premium of 142.1 percent over the closing share price of GIPS stock on January 11, 2010 (the last day of trading before GIPS announced interest from a potential buyer).  The deal will mean Google owns the technology that underpins part of the instant messaging systems of rivals including Yahoo, AOL and Baidu. GIPS also makes the underlying processing software for voice and video calls over Internet networks.

Google already has some similar services – such as Google Talk, Google Voice, and video and voice chat on Gmail – but the GIPS acquisition will enable Google to create more powerful voice and video services and also enhance its Google Apps package of business productivity tools. In November last year Google announced it had bought VoIP firm Gizmo5 for an undisclosed sum, a deal designed to strengthen the search giant’s existing Google Voice application for making VoIP calls via PCs and mobiles.