Amid the buzz that Basis is in talks with Google (GOOG) and others for an acquisition, speculations are rife that Intel Corporation (INTC) has outbidden the other contenders in an auction sale to acquire Basis for a reported sum of about $100 million.
With the acquisition of the technology and hardware of Basis, Intel will gain the resources to target the hottest electronic gadgets- wearables. It will also gain the talent that has invented one of the most effective and far-reaching wearables to date.
At CES 2014, Intel’s entire presentation revolved around wearables and perceptual computing. Intel revealed a variety of gadgets and wearable devices powered by the Quark processor. It also displayed smart earbuds to record heart rate patterns through the headphone jack. It also announced its plans to launch a GPS integrated smartwatch.
The latest move confirms the chipmaker’s intent to design a smartwatch. Intel can now gain traction in the smartwatch space with the acquired technology.
Basis, a privately held company, is financed by DCM, Mayfield Fund, and Norwest Venture Partners. It has designed a smartwatch, called the world’s most advanced health tracker, and an online personal dashboard to help users lead a healthy lifestyle by including good habits in their everyday routine.
Currently, Basis’ product has secured 7% of the market while the likes of Fitbit and Jawbone hold 58% and 21% share, respectively.
Intel is visibly looking at the wearable and embedded devices space. The chipmakers first wearable device is called Jarvis, a Bluetooth headset, which enables the user to save day to day information by just issuing commands.
It recently announced the Make it Wearable challenge where participants have to submit one-minute videos of new designs for wearable technologies.
Given its recent mobile push, Intel will be increasingly pitted against companies like QUALCOMM Inc. (QCOM). Additionally, competition from traditional peers Advanced Micro Devices (AMD) and STMicroelectronics NV (STM) is not expected to alleviate.
Currently, Intel holds a Zacks Rank #3 (Hold).
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