Snap Inc., the rebranded name for the iconic photo-sharing app, recently and reportedly acquired an Israeli-based start-up company specializing in augmented reality system. The purchase of Cimagine Media is said to have been worth around $30 million and $40 million.
Calcalist, the Israeli business news outlet, originally reported on Dec. 25 the relatively silent acquisition of Cimagine Media. The four-year-old Israeli-based start-up is Snap's first acquisition in Israel and ninth overall.
This could mean that Snap will be able to establish a development center in the Middle East. The report furthered that Snap will eventually hire more than 20 employees who are currently working at the recently purchased start-up company.
Per Venture Beat, Cimagine Media is a start-up company specializing in real-time image processing, computer vision, international marketing, and more. Basically, the company developed an augmented reality platform allowing consumers to visualize items or products they would want to purchase and placing it in the intended location in a virtual room with a press of a button.
One notable thing about this purchase is that the next Snapchat filter could carry a better version of an augmented reality for its users. Or they could make shopping through Snapchat a tad bit easier for consumers, worldwide, as Snapchat is reportedly moving forward with an IPO.
Snap Inc. could value at approximately $20 billion to $25 billion, according to TechCrunch. The company is expected to officially come out as early as March 2017. Should the company go through with going public, then it needs to be one step ahead of its competitors such as Facebook?
So, Cimagine's purchase brings to the table a focus on the commerce for Snap Inc, since Cimagine Media is a pioneer of visualization commerce or "v-commerce," as profiled by Geektime. And it might also be possible that shopping via Snapchat could pave the way for further profits for the company. Also, Cimagine Media is in partnership with the global giant, Coca-Cola; the digital retailer based in UK, Shop Direct; a furniture store in Southern California, Jerome; and John Lewish Partnership (JLP).
There is no official statement released by Snap Inc. regarding the reported acquisition. But the company tends to be a bit secretive about its purchases. Also, it is unclear what Snap intends to do with the AR technique from Cimagine Media or if Snap will expand into e-commerce.
