Google has announced that it will acquire a software company specializing in PC/ mobile phone compression. The company is named On2 and it is sold for over $105 million.

On2 will offer google the expertise to offer leading video compression techniques for use on PCs and wirelessly over mobile phones and smartphones.

On2 has released some popular software like On2 Video, On2 Encoding and On2 Embedded. The company has an interesting customer list with customers like Nokia and Skype.