Google Close to Acquire Intel, Samsung -backed AdHawk Microsystems for $115 Mn

Google is reportedly in the final stages of acquiring AdHawk Microsystems, a Canadian startup specializing in eye-tracking technology, for $115 million. This acquisition is part of Google's renewed focus on headsets and smart glasses, aiming to integrate AdHawk's advanced eye-tracking technology into its Android XR operating system.

Image ~ AdHawk@X/Twitter

AdHawk Microsystems, founded in 2017, has developed innovative eye-tracking technology that eliminates the need for traditional cameras, enabling higher sampling rates, lower latency, and improved efficiency. Their technology is particularly valuable for augmented reality (AR) and virtual reality (VR) applications, making it an attractive acquisition for Google.

AdHawk has received investment from major tech firms like Samsung, Intel, HP, and Sony, as well as Ray-Ban owner EssilorLuxottica, which is Meta's partner in smart glasses. This highlights the industry's confidence in the Canada based startup's technology and potential.

AdHawk Microsystems is a relatively young company, founded in 2017. While its technology is advanced, the company may not yet have achieved significant market penetration or revenue generation, which can impact its valuation. The acquisition price of $115 million for AdHawk Microsystems, despite its innovative technology, can be attributed to this along with several other possibile factors.

The eye-tracking technology market is competitive, with several players offering similar solutions. While AdHawk's technology is innovative, it may face competition from other companies, which can influence its valuation.

The acquisition includes $15 million in performance-based payments, indicating that the final price is contingent on AdHawk meeting certain targets. This structure allows Google to manage risks and ensure that the technology delivers on its promises.

This possible acquisition aligns with Google's broader strategy to enhance its presence in the AR/VR market, following its previous acquisition of parts of HTC's XR division and the launch of the Android XR operating system.

Interestingly, AdHawk Microsystems has had some notable interactions with Meta (formerly Facebook). In 2022, Meta considered acquiring AdHawk Microsystems, but the deal did not materialise. AdHawk's advanced eye-tracking technology, which is crucial for augmented reality (AR) and virtual reality (VR) applications, made it an attractive target for Meta. However, the acquisition talks did not progress, and AdHawk continued to operate independently.

AdHawk's micro-electromechanical systems (MEMS) eye tracker requires significantly less data than camera-based systems, producing higher sampling rates and lower latency. This technology is particularly valuable for augmented reality (AR) and virtual reality (VR) applications.

AdHawk has also developed products like the MindLink glasses, which offer high-speed, high-quality eye tracking in a mobile device. These glasses are used by researchers and clinicians to study eye movements and their connection to neurological and ocular health.

AdHawk's eye-tracking technology is used in various fields, including human-computer interaction, cognitive wellness, and productivity enhancement. Their technology provides valuable insights into human behavior and mental states, making it a powerful tool for AI assistants and other applications.

Google's past acquisitions in AR /VR segment

Google has made several strategic acquisitions in the AR/VR sector over the years to enhance its capabilities and expand its presence in this market.

In 2016, Google acquired Eyefluence, a company specializing in eye-tracking technology for AR/VR headsets. This acquisition helped Google enhance its eye-tracking capabilities, which are crucial for creating intuitive and immersive AR/VR experiences.

In 2017, Google acquired a portion of HTC's XR (extended reality) division for $1.1 billion. This acquisition brought in talent and technology to bolster Google's AR/VR efforts, particularly in developing hardware and software for immersive experiences.

In 2020, Google acquired North, a Canadian company known for its Focals smart glasses. This acquisition aimed to strengthen Google's position in the smart glasses market and integrate North's expertise in creating lightweight, stylish AR glasses.