Snapchat Makes Discreet $40M Purchase Of Israeli VR Firm

Snap Inc.’s IPO launch is nearing, but it would seem that the creator of Snapchat is still looking to add more to its value. In the latest move by the popular app company, its reported acquisition of an Israeli AR company made headlines, which apparently cost Snap Inc. around $40 million.

The AR company, in question, is called Cimagine, according to the Times Of Israel’s report on the matter. It would appear that the newly acquired firm will be one of Snapchat’s international branches, operating in an R&D capacity.

The company is based in Kfar Yehoshua and is composed of 20 people at the moment, led by CEO Yoni Nevo. Thanks to its acquisition by Snap Inc., the firm is planning on adding more personnel in the future. In terms of its products, Cimagine uses AR in a wholly different way than what most people are likely used to.

Whereas other AR devices focus on superimposing virtual pets or games over the real world, Cimagine actually allows customers to view products on a life-like scale when ordering online. This would allow them to get a better sense of an item’s appearance, dimensions, and even functionality without ever having to look at it in real life.

Such features are incredibly useful when shopping online, but Snap’s intent behind the acquisition likely stems from its desire to further improve brand campaigns, TechCrunch reports. Those who remember Snapchat’s partnership with Starbucks to allow customers to use filters on the chain’s drinks and send it to their contacts will find such campaigns familiar in the future.

More than that, Cimagine is composed of people who are experts in their respective fields, which also makes the acquisition a talent investment. With Snap trying to get ahead in the computer-generated AR industry, finding as many talented individuals as possible would be a priority.