Basis Science, the company that makes the Basis Health Tracker Watch, has been acquired by Intel, TechCrunch reported citing sources.
One source told the tech news website that the price tag for the deal was about $100 million but another source said it was closer to $150 million. The wristwatch health tracker product of Basis hugs 7% of the market against its rival Jawbone's 21% market share. Since Intel was foraying into the wearable market this year at the CES in January, the TechCrunch report surmised that this acquisition is a quest to strengthen its hold in the wearable technology segment.
Citing sources, a February 16 TechCrunch report said that Basis has placed itself on the auction block and that Google, Apple and potentially Samsung and Microsoft were among those it had talked to about a possible sale. The sources in that report said the price tag for a deal was below one hundred million. Should this happen, it could translate to meager returns for Basis Science's backers Norwest Venture Partners, Mayfield Fund and Intel Capital that have invested more than $30 million in the wearable technology maker, that report said.
Among some of its designs which it showcased at the conference are Jarvis and Edison. Jarvis is a Bluetooth headset that works like Siri while Edison is a smart chip that could be used in various applications such as smart baby clothing, the report said.
Intel may not have plans to rival others in the consumer electronic marketplace since it offers chipset platforms. However, a Basis acquisition would allow it to add members of a team that has successfully come up one of the best wearable technologies so far.
Intel is trying to get up to speed with competitors like Qualcomm, Texas Instruments and STMicroelectronics that supply most of the sensors for wearables and a Basis acquisition would help it work towards that end, the report said.
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