Following a report that Apple (NASDAQ:AAPL) has acquired PrimeSense, an Israel-based 3D-sensor technology company, a new report has claimed that the deal is not yet complete, as it is “hung up on end-game issues.”
Calcalist, an Israeli news outlet reported on Sunday that Apple has bought PrimeSense, which powered Microsoft’s (NASDAQ:MSFT) Kinect technology, for $345 million. The acquisition was scheduled to occur at the beginning of November, but was delayed due to legal issues about developers' partnerships, the report said, adding that Apple is expected to announce the buy-out within the next few weeks.
Meanwhile, a report from AllThingsD suggested on Sunday that the deal between Apple and PrimeSense is not yet done, and the reported valuation would not turn out to be “a huge win for investors.”
Citing unnamed sources, the report said talks between both parties are close to complete, but are currently at an impasse on issues such as liquidity preferences. There is also a possibility of the deal’s value to be raised slightly by $20 million. However, according to sources, even after the higher valuation, the deal might still be construed as Apple overpaying for an acquisition, given the company’s recent valuation at about $250 million.
While one of the sources considered the deal to be “a bit of a letdown, but a decent outcome,” another one called it “the best that could happen, given the circumstances: A big strategic buyer at a decent price,” AllThingsD reported.
Apple has not made any comments regarding the acquisition, while PrimeSense issued a statement to Reuters saying:
We are focused on building a prosperous company while bringing 3D sensing and natural interaction to the mass market in a variety of markets such as interactive living room and mobile devices. We do not comment on what any of our partners, customers or potential customers are doing and we do not relate to rumors or recycled rumors.
PrimeSense is known for making machine-vision products that can create maps of 3D environments and track facial expressions and body movements. The company’s sensing technology was used in the development of Microsoft's Kinect sensor for its Xbox 360 games.
The acquisition of PrimeSense, which has reportedly raised $85 million from Israeli and U.S. venture capital funds such as Canaan Partners Global, Gemini Israel and Genesis Partners, will be Apple’s second purchase of an Israeli company. The iPhone-maker bought Anobit, a flash-storage chip maker, in January 2012.
A diehard lover of photography, Kukil Bora started his career as a Web journalist with a Bangalore-based media firm called “SiliconIndia” in 2010. After working there for a...