Wearable sensor maker StretchSense, a University of Auckland spinout, has been purchased out of administration by an unnamed buyer.
StretchSense, a New Zealand-based wearable sensor manufacturer spun out from University of Auckland, has been sold into new ownership having fallen into administration in July 2019, the New Zealand Herald reported yesterday.
The New Zealand-based buyer was not identified in the report but has reportedly signed an unconditional agreement to purchase StretchSense for an undisclosed sum next week.
The development comes after plans for StretchSense’s acquisition by e-commerce firm StartToday were halted in April 2018, resulting in 140 job losses.
StartToday owned a 39.9% stake and was permitted to buy the remaining equity at a $120m valuation under an option agreement which expired in September 2018.
Founded in 2012, StretchSense produces sensors that can be affixed to garments to form wearable technologies for applications including sports tech, health monitoring and motion capture.
The company will reportedly continue research and development following the acquisition, focusing on the production of stretchable sensors and motion capture gloves. Its founder and director, Ben O’Brien, will remain with the business.
StartToday invested $20m for the aforementioned option in November 2017, having previously supplied an undisclosed amount of series A capital in 2016.
StretchSense had already raised an undisclosed seed sum from state-backed New Zealand Venture investment Fund and angel syndicate Flying Kiwi Angels, and had also counted Auckland UniServices – the university’s the transfer arm – government-owned innovation agency Callaghan Innovation and angel investor Ralf Muller among its backers.
– Feature image courtesy of StretchSense
