) recently entered the health tracking wearbles market with the
completion of the Basis Science acquisition. Intel's share price
touched an intraday high of $25.67 following the news before
closing at $25.46, thereby recording a 1.4% increase.
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The Basis team of 60 members will join Intel's New Devices Group
to work on the chipmaker's future wearable products. Though the
financial terms of the deal were not announced, Intel reportedly
paid about $100 million. Intel will likely continue selling
Basis' products through the company's present trade channels.
Basis is the inventor of one of the most effective and
far-reaching fitness and health wearables to date. With the
acquisition of Basis' assets, Intel gains additional resources to
target the hottest electronic device category- wearables.
Intel apparently doesn't have plans to kill off the Basis brand.
In fact it's possible that Intel will build on the brand with
additional products that could stimulate its growth in the
Intel has been showing increasing interest in the space. Earlier
this year, at the Consumer Electronics Show, Intel revealed its
ambitions to explore deeper into wearables and perceptual
computing. Intel presented a range of gadgets and wearable
devices powered by the Quark processor. It also displayed smart
earbuds to record heart rate patterns through the headphone jack
and announced its plans to launch a GPS integrated smartwatch.
The latest move confirms the chipmaker's intent to design a
smartwatch. Intel can now gain traction in the smartwatch space
with the acquired technology.
Basis Science, a privately held company, is financed by DCM,
Mayfield Fund and Norwest Venture Partners. It has designed a
smartwatch, claimed to be the world's most advanced health
tracker, and an online personal dashboard to help users lead a
healthy lifestyle by including good habits in their everyday
routine. It faces competition from the likes of Fitbit and
The wearables and Internet of Things (IoT) segments are emerging
areas within technology where companies like
) among others are trying to build a position.
Currently, Intel holds a Zacks Rank #3 (Hold).