Google buys Gizmo5

Google is hoping its latest purchase of Gizmo5 will help Google Voice become a Skype competitor.

Gizmo5 makes the software that lets users make voice-over-IP (VoIP) phone calls from their computers and mobile phones. The service it offers is very similar to Skype, which also offers VoIP calling.

Google announced the acquisition on its Google Voice blog where Wesley Chan and Craig Walker said that current Gizmo5 users will be able to continue using the service but Google will be suspending new signups. Existing users will also no longer be able to sign up for a call-in number.

"While we don't have any specific features to announce right now, Gizmo5's engineers will be joining the Google Voice team to continue improving the Google Voice and Gizmo5 experience," Chan and Walker said.

The acquisition of Gizmo5, which is similar to Skype, follows Google's two years back purchase of Grand Central, which is now Google voice.

Last week Google bought mobile advertising firm AdMob. It also said in an interview with Reuters that it plans to purchase about one company a month.