Baidu (Nasdaq: BIDU) has acquired Tapas, the Android-based mobile OS developer backed by Chinese incubator Innovation Works, for over $10 million, according to Marbridge Consulting.

According to an industry insider, Baidu has completed an acquisition agreement with Tapas, but has yet to officially announce the cost of the purchase.

However, Tapas CEO Zhang Lei recently denied rumors of a Baidu acquisition as well as rumors of investment by Baidu and Tencent (0700.HK).

Zhang previously oversaw Baidu's wireless division, and Tapas head of products You Minli formerly worked in Tencent's 3G wireless products center.