IP Group is exiting the diffractive waveguide producer in a cash-and-share purchase by Snap.
Messaging app developer Snap is acquiring WaveOptics, a US-based augmented reality (AR) technology provider backed by commercialisation firm IP Group, for over $500m, the Verge reported on Friday.
The transaction will consist of cash and shares, with Snap paying half upfront and the rest in two years’ time, the company told CNBC.
WaveOptics develops and produces diffractive waveguides, a key optical component in AR systems that allows images to be overlayed onto a solid transparent surface such as the glass in AR goggles. Snap recently announced the fourth iteration of its AR goggles, which are sold under the Spectacles brand.
IP Group joined electronic components manufacturer Goertek and Robert Bosch Venture Capital (RBVC), the investment arm of industrial technology producer Bosch, as well as Hostplus, Octopus Ventures Optimas Capital Partners and Gobi Partners in WaveOptics’ series C round, which closed at $39m in 2019.
The company had received $15.7m in a 2017 series B round featuring Touchstone Innovations (subsequently acquired by IP Group), RBVC, Octopus Ventures and Gobi Partners.
IP Group had already invested in WaveOptics through a multimillion-pound series A round in 2015 also backed by AR technology provider Blippar, RBVC, Octopus Ventures and unnamed individuals.
– A version of this article first appeared on our sister site, Global Corporate Venturing.
