Gowalla works in a similar way to Foursquare and allows users to share their location with friends and access information, recommendations and photos from the surrounding area. The app integrates with Facebook Places and blogging site Tumblr.The social network had been tipped to have made an offer for the company, a rival to location-based mobile company Foursquare.

According to CNN Money, the majority of Gowalla’s staff will relocate to Facebook’s offices to help with the rollout of the social network’s new Timeline design, revealed this September.

Facebook declined to comment on the report.