Internet search giant Google announced on Friday that it has reached an agreement to acquire Sparrow, a company that sells a popular email app for Apple's iPhones, iPads and Mac PCs. The move was essentially a talent-driven acquisition, as Google will reemploy Sparrow's five employees to new projects at Google's massive Gmail email service. Sparrow, the app, will be kept running, and support will still be available, but no significant updates will be developed for the application in the future.
Financial terms of the deal were not disclosed, but insiders speculated the purchase price was under $25 million, which would barely make a dent in the $43 billion the company has in cash reserves, leaving it in a solid position to continue expanding. This is certainly not Google's first acquisition made purely to add talent, as the Mountain View, California-based company just last month purchased social advertising platform Meebo for $100 million and shifted its entire work force over to its Google+ social network. And two years ago, the tech titan spent $50 million on a social search firm called Aardvark, absorbing its staff and completely shutting the firm down last September.