Intel Corporation (NASDAQ:INTC) announced Tuesday in a press release that it has completed the acquisition of Basis Science Inc., which makes health and fitness tracker Basis Band. TechCrunch reported earlier this month that the chipmaker is planning to purchase Basis. Though Intel didn’t disclose terms of the deal, sources told TechCrunch that the Santa Clara-based company had to shell out around $100 million for Basis Science.
Basis CEO to join Intel’s new device group
Intel Corporation (NASDAQ:INTC)’s announcement comes as the nascent wearable technology market is heating up. Google Inc (NASDAQ:GOOG) announced its Android Wear operating system for smart watches on March 18. The search engine giant has partnered with many Asian vendors to make wearable devices running on Android Wear. Apple Inc. (NASDAQ:AAPL) is also reportedly planning to launch its long-rumored iWatch later this year.
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So far, most of the wearable devices have been focused on health and fitness. Basis Band monitors a user’s heart rate, sleep patterns, activity level, walking data, perspiration and body temperature. Intel Corporation (NASDAQ:INTC) made it clear during this year’s Consumer Electronics Show that it is taking wearable technology seriously.
Acquisition of a fitness tracking company may not seem natural for Intel Corporation (NASDAQ:INTC), which is known primarily for chips. But the company created a ‘new device’ group last year under vice president Mike Bell. Basis Science CEO Jef Holove will join Intel’s new device group as a general manager. Mike Bell said Basis will continue to sell its fitness trackers. And the 60 employees of Basis will now work on Intel’s “future wearable initiatives.”
Intel gets instant access into wearable market
The chipmaker said that the acquisition gives it an instant access into the wearable market. Basis CEO Holove said in a blog post that the company will now have access to Intel Corporation (NASDAQ:INTC)’s vast resources at a time when the wearable industry is set to become fiercely competitive. So far, Basis Science has been using Texas Instruments Incorporated (NASDAQ:TXN) processors in Basis Band. Mike Bell says that Intel chips might replace them in the future.
Intel Corporation (NASDAQ:INTC) shares rose 1.35% on Tuesday to close at $25.46, and inched up another 0.43% in pre-market trading Wednesday.