Snapchat has acquired Israeli augmented reality startup Cimagine for a reported $35 million USD. Cimagine’s augmented reality platform allows consumers and retailers the opportunity to better visualize products such as furniture and appliances in a room via their mobile devices. This is Snapchat’s first venture into acquisitions in the Israeli market.
“Visual interaction is at the soul of Snap and as the lines between digital and physical engagement blur mix, reality services will rule the day,” said Michael Becker, managing partner at The Connected Marketer Institute. “The future of visual engagement will be driven by augmented and virtual reality, the former will turn physical media (including space and distance) into interactive media, and the later shall immerse individuals into worlds that are limited only by a brand’s imagination.
“There are a wealth of intriguing examples for the application of AR. For example, recent ISACA study reported that vast majority of individuals would like to use AR from training, retail, and shopping guides, to healthcare and home decoration services, as well as gaming and more.”
The acquisition underscores Snapchat’s continued dedication in incorporating AR into its platform. The timing of the acquisition is also interesting given the rumored IPO they are working on which could peg the company at a $25 billion valuation. Significantly more that the $3 billion Facebook offered.