Snapchat to acquire Cimagine

Messaging app Snapchat is buying Israeli augmented reality start-up Cimagine media for an estimated $30-40 Million, making Snapchat first acquisition in Israel. Cimagine developed true marker less augmented reality technology that allows users to virtually place furniture and appliances they wish to purchase in the space of their home, on their mobile devices, at the click of a button.

Cimagine will become Snapchat research and development centre in Israel and is expected to rapidly expand its workforce from its current 20 employees. The company’s highly skilled team is probably the main reason for the acquisition, rather than its technology. The company was founded in 2012 and has raised a few million dollars. Venice, California based Snapchat is expected to go public as early as March with a valuation of as much as $25 Billion.

Cimagine specializes in computer vision, real-time image processing, mobile development, international marketing, and more. All of these are obviously compelling for Snap, whose app Snapchat is heavily reliant on augmented reality and the like. But what Cimagine brings to the table is a focus on commerce and as Snap looks towards going public perhaps some time next year, it’s quite possible that doing facilitating shopping through Snapchat might open up additional revenue opportunities.

Cimagine already has partnerships with Shop Direct, John Lewis, and Coca-Cola and wants to help retailers tap into the potential of augmented reality. So Snap may want to eventually strike partnerships with big box retailers and department stores to accelerate engagement and time spent on site. Merchants and store owners may want additional advertising opportunities so the potential of what Cimagine’s technology and team could bring to bear may be enticing.