Mobile craze packed with filters and stories, Snapchat has acquired Israeli AR start-up, Cimagine Media in a $30-40 million deal. Cimagine develops software that allows users to visualize what an item might look like in their surrounding environment. According to CNBC, the start-up works with Shop Direct to allow customers to see what furniture would look like in their home via a tablet. This so-called augmented reality use is of interest to Snapchat, considering Snapchat uses this technology in their lenses to let users turn their faces into animals for example.
Snap Inc., the owner of Snapchat, is recognized as a company that hardly discloses acquisitions but has made a handful this year. Beginning of this year, Snap bought a start-up that makes personalized emojis, Bitstrips and also an advertising technology called Flite.
The merger also comes as Snap looks to a reported IPO next year that could value the company at between $20 billion and $25 billion, according to many media reports.