Channel Intelligence tracks nearly 15 percent of U.S. transactions online and drives $2 billion in sales annually, according to its website.
"Our vision for CI started with the desire to simplify the online shopping experience," said Rob Wight, Channel Intelligence founder and chairman.
The company's website said it "has developed a technology to help merchants maximize sales" and "generate qualified consumer visits and profitable product sales."
"We've worked with Google for years, and look forward to the great things we will be able to do together," the company said.
A Google spokeswoman said, "We want to help consumers save time and money by improving the online shopping experience. We think Channel Intelligence will help create a better shopping experience for users and help merchants increase sales across the web."
More than 850 retailers in 31 countries use Channel Intelligence technology, including where-to-buy, product search engines, shopping engines, and Facebook Inc.'s social network. The provides, among other services, software that tracks and delivers product advertisements in search results and software that adds "buy-now" and "learn more" buttons to online product advertisements.
"We successfully navigated a very complex marketplace, ending a record year that culminated in this very exciting acquisition," ICG president Doug Alexander said in a statement.
"The sale of CI to Google is a testament to the quality of its technology and its strong team," said ICG chief executive Walter Buckley.
ICG shares rose 4 percent, or 48 cents, to $12.52 on Wednesday.
Contact staff writer Linda Loyd at 215-854-2831 or email@example.com.