The transaction price is almost five times the startup’s capitalization.
WaveOptics manufactures waveguides and projectors for augmented reality glasses. Snap previously worked with WaveOptics to create previous versions of Spectacles, and now decided to buy the startup completely, reports The Verge.
The first half of $500 million will go to the former owners of WaveOptics in the form of shares after the official closing of the transaction. The other half is in cash and shares in two years.
PitchBook estimates that WaveOptics had a market cap of about $105 million. Earlier, the company raised $65 million from investors.
WaveOptics technology is distinguished by the fact that it dramatically reduces the load on the equipment that processes and displays images through the glasses. The company also owns 12 registered and under-development patents.
Since January, Snap has bought at least three other startups: Fit Analytics for commercial augmented reality products, Pixel8Earth, and StreetCred for maps inside Snapchat and other tools.
Snap unveiled the new version of Spectacles at the Snap Partner Summit on May 20. The glasses will have two cameras, four microphones, a touchpad and buttons for control. The previous version of Spectacles costs £330