Google completes $124m acquisition of On2

Google's intention to buy On2 was announced in August

Google has finally completed its purchase of video processing firm On2 Technologies in a $124.6 (£80.5m) deal which will expand the web giant's online video capabilities.

On2 specialises in the production of video codecs and compression tools, and has licensed some of its technology to Adobe and Sun Microsystems for use in video players and browser plug-ins.

"Video is an essential part of the web experience today, and we believe that high-quality video compression technology should be a part of the web platform, " said Sundar Pichai, vice president of product management at Google.

The acquisition has been pending since it was announced in August last year while shareholders condsidered the deal.

"We ae excited to welcome the On2 team to Google and to continue to enhance the video experience for users on the web," said Pichai.

"Through rapid innovation in browsers and web standards, the iternet is becoming the leading platform for development. We believe On2's engineering talent and technology will be an incredible asset for us as we work to improve this platform."

The deal rounds off a busy week for Google. The web giant also announced plans to acquire iPhone app maker reMail and social search engine Aardvark.