Intel Corporation (NASDAQ:INTC) has outbid all others to buy Basis Science for about $100 million, sources close to the deal told TechCrunch. Another source said the acquisition cost the chipmaker close to $150 million. Basis Science had been looking for a potential buyer for the past several weeks. Sources said that the start-up had also spoken to Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930).
What does Intel plan to do with Basis?
A maker of wristwatch health trackers, Basis Science occupies about 7% of the wearable market share, compared to the 21% share that rival Jawbone has. Among all the fitness tracker devices available today, Basis Science is said to be the most accurate wristwatch for data collection and reporting. Its only drawback has been a clunky design. Intel Corporation (NASDAQ:INTC) announced at the Consumer Electronics Show this year that it’s getting into the wearable devices market. The acquisition of Basis Science could be the Santa Clara-based company’s attempt to strengthen its foothold.
Intel Corporation (NASDAQ:INTC) showcased its own designs at CES. The company showed a smart chip called Edison and a Siri-like Bluetooth headset dubbed Jarvis. Experts say that Intel Corporation may not have an aspiration to directly rival the consumer electronics companies. It might want to sell processor platforms. But the purchase of Basis Science will bring a team that has build one of the most comprehensible and powerful wearable devices in the market. Intel can use that talent and technology in its own designs. Last month, Intel CEO Brian Krzanich said in an interview that he is currently using a wearable device made by Intel to monitor his health and fitness.
Intel trying to catch up with rivals
Intel Corporation (NASDAQ:INTC) is trying to catch up with competitors Texas Instruments Incorporated (NASDAQ:TXN) and Qualcomm, Inc. (NASDAQ:QCOM) that are leading suppliers of sensors for wearable devices. To jump-start adoption, Krzanich will have to provide complete solutions, and have to persuade brands on buying his company’s wearable platforms. Basis Science has a solid online suite, which should provide Intel foundation for the complete package for consumer electronics companies.
Intel Corporation (NASDAQ:INTC) shares inched up 0.69% to $24.67 in pre-market trading Tuesday.