Twitter co-founder and CEO Evan Williams announced this past week that the microblogging company has recently acquired Mixer Labs, creator of the GeoAPI after launching its geotagging API with support from several of the top Twitter clients last month.

With location sharing making many 2010 trend lists for social media it is no surprise that the popular social networking service will emerge as a front runner to take this feature on.

“When current location is added to tweets, new and valuable services emerge - everything from breaking news to finding friends or local business can be dramatically enhanced,” said Williams on the Twitter blog.

Mixer Labs has been working hard over the past few years on a comprehensive service for helping developers build geolocation-aware applications. Some of its products that likely appeal to Twitter are the Reverse Geocoder (find a location with longitudes and latitudes), Places Finder (geo-queries) and location-enabled Media Layers (query other media in a geo-specific context).

As a part of the acquisition Twitter will not only be looking for a way to integrate the work Mixer Labs has done in this field, however it will certainly be looking to build its own location app to integrate into its own services, making Twitter more relevant and interesting to its community.

The Mixer Labs team has been made a full part of Twitter and is moving into Twitter headquarters in San Francisco, California.