US location-based services firm Useful Networks has acquired Canadian firm KnowledgeWhere, which also focuses on location-based services.

There is a games angle, since KnowledgeWhere's technology has been used to make location-aware mobile games including Swordfish and PhoneTag Elite.

It's an area that's becoming more prominent thanks to the rollout of GPS-enabled handsets.

However, the company also works on social networking and advertising-based services.

Meanwhile, Useful Networks is the company behind Sniff, a location-based social networking service that launched in the UK earlier this year.