Intel has reportedly acquired the smartwatch making company, Basis Science, adding to its growing interest in the wearable tech category.
Intel, the popular chip maker, has disclosed its intentions of joining the wearable tech arena with its first smartwatch prototype shown at the Consumer Electronics Show in January this year. Now, the chipmaker has acquired Basis Science, the maker of Basis Tracker Health watch, sources revealed to TechCrunch. Intel did not confirm the acquisition, but the report claimed the deal was sealed somewhere between the $100 million to $150 million price mark.
Basis Tracker Health watch remains a popular accessory with a 7 percent market share. The competition remains tough for the health tracker, as the Jawbone health tracker has captured 21 percent share. Intel's acquisition of Basis Science will prove profitable for both companies as Intel aims at taking on rivals such as Qualcomm, Texas Instruments and STMicroelectronics, which have already been active participants in the growing arsenal of sensor and processor design for wearable devices.
Basis health tracker is a fine wearable accessory, battling with the likes of FitBit in the current market. Backed by investors like DCM, Intel Capital, Mayfield Fund and Norwest Venture Partners, the company was able to raise $30 million. Basis was previously speculated to be carrying a "For Sale" board, looking for a potential owner among major tech leaders like Google, Apple, Samsung and Microsoft.
Intel was not in the potential buyer's list but it seems the software company outbid its competitors. After all Intel offered more than what Basis Science was expecting, a sub-hundred million price range.
The wearable tech race is already intense with entries from big tech companies like Samsung, and some startups like Pebble taking lion's share of the market. Other companies like Apple, Google and Microsoft are reportedly working on a smartwatch of their own. Samsung recently unveiled Gear 2, Gear Neo and Gear Fit, marking a new lineup for its wearable wristwear after dropping the moniker Galaxy. Intel will need to come up with unique and impressive features along with an affordable price range to take a prominent place in this category.
