Yet more exits for Israeli startups, with the latest two developments a throwback to the hardware and engineering muscle that raised the tech profile of the region in the first place, before the Waze’s of the world got us thinking about Israel as a hotbed of consumer internet companies.
Today, reports leaked out, and we have now confirmed, that Intel has acquired Omek Interactive, a company it had already invested in that makes technology for gesture-based interfaces. At the same time, Israel publication the Calcalist is reporting that Apple is circling around PrimeSense, another developer of gesture-based technology that has been used in Microsoft’s Kinect. Together, the moves could be a sign that gesture-based controls such as those in Microsoft’s Kinect may become even more prevalent.
The Apple/PrimeSense talk, however, appears to be too early, if not altogether inaccurate. The Calcalist’s report notes that this is based around some meetings between the two companies, and that the price for the deal would be around $280 million. But a source at the company described the report as “BS.”
This is “journalist delusion based on unverified and twisted hints,” the source added, also questioning the valuation: “280M? Come on! We’re worth 10 times that. 
” Up to now, PrimeSense has raised nearly $30 million from investors that include Gemini Israel Funds, Canaan Partners, Genesis Partners and Silver Lake Partners and bills itself as “giving digital devices the gift of sight.”
Meanwhile, we have contacted Omek, where the person we tracked down on the phone giggled (yes) and then referred us to Intel for any questions.
We have yet to hear back from Intel or investing arm Intel Capital. A post on Harretz notes the deal actually concluded last week. Haaretz has also managed to get a confirmation directly from Intel: “The acquisition of Omek Interactive will help increase Intel’s capabilities in the delivery of more immersive perceptual computing experiences,” the statement says.
Update: Intel has confirmed to me that the transaction has closed. In addition to the same statement it gave Haaretz, an Intel spokesperson added it’s not confirming the value of the deal, and “we are also not disclosing the timelines on future products that integrate this technology.”
The reported value of Intel’s deal for Omek is between $30 million and $50 million. Without actually hearing from Intel on the details, for now there appears to be a few lines of thinking behind why Intel is going beyond being simply a strategic investor. (Omek has raised $13.8 million to date, with $7 million of that coming from Intel Capital.)
The first of these — as explained in a story in VentureBeat, which first reported talks between the two in March of this year — is that Omek may have been in the market to raise more money and that it chose the exit route instead of going it alone.
Another is that Intel wants the technology as part of its bigger moves into 3D visualization and “perceptual computing”, Intel’s catch-all term for gesture, touch, voice, and other AI-style sensory technologies. This is also the subject of a $100 million investment fund Intel launched in April.
And a third is more mundane and cynical, and potentially true regardless of Intel’s wider, more airy ambitions. The blog GeekTime suggests that this is a hardware play: Intel wants Omek for technology that it can embed into chips. The more functionality it can add that will drive new purchases of those chips by device makers, the better:
“The search for worthy power eating technologies to justify the need for yearly chip version upgrades is an integral part of the hardware industries market management strategy,” it writes. “Device companies must be convinced of the need to design their products to support the more expensive vanguard models of the processing world, placing the need for innovation above price point, and even quality in some cases.”
Whether or not the PrimeSense news is accurate, 9to5Mac makes a convincing argument for how the startup’s intellectual property could fit in with other IP at Apple already; and with Apple’s bigger ambitions to develop products that take it further into the living room, specifically with Apple TV.
And that, in the end, seems to be the crux of today’s news as well. However you cut it, and whoever ends up controlling it (in the tech sense), gesture is increasingly coming into focus and will let us get machines to do our bidding with the wave of a hand, or finger, soon.
Intel Capital, Intel’s global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing and cleantech. Since 1991, Intel Capital has invested more than US$10.8 billion in over 1,276 companies in 54 countries. In that timeframe, 201 portfolio companies have gone public on various exchanges around the world and 317 were acquired or participated...
Intel is best known for producing the microprocessors found in many personal computers. The company also makes a range of other hardware including network cards, motherboards, and graphics chips. Intel created the first commercial microprocessor chip in 1971, but it was not until the success of the personal computer that microprocessors became their primary business. In the 1980’s they were an early developer of SRAM and DRAM memory chip, and during the 1990s they invested heavily in new microprocessor...
Omek Interactive provides tools and technology that enable manufacturers and software developers to add gesture-based interfaces to their products. Omek’s gesture recognition and body tracking software is being incorporated into a broad range of devices – from TVs, set-top boxes and game consoles, to tablets, notebooks and PCs, smartphones, interactive signs, medical and fitness devices, and more. The gesture-enabled applications running on these devices include games, advertising, physical therapy, home and factory automation, security and surveillance, virtual fitting, and beyond....
Prime Sense’s concept is a device, which allows a computer to perceive the world in 3D and derive an understanding of the world based on sight, just the way humans do. On March 31, 2010, PrimeSense confirmed that it was the technology behind Microsoft’s much-touted “Project Natal”. The device includes a sensor, which sees a user (including their complete surroundings), and a digital component, or “brain” which learns and understands user movement within those surroundings. Prime Sense’s interactive device can see,...
Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Among the key offerings from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook Air) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod, the...
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