writing is on the wall for further consolidation in the startup world … literally and figuratively. Today, Anoto, digital document company based in Sweden, said it would buy long-time partner LiveScribe, other smart pen manufacturer, for $ 15 million in the deal, which is expected to close this month.
In particular, Anoto says it all-cash transaction and is based on an enterprise value of $ 15 million, “equal to estimated annual sales for 2015.”
This deal grades, but lower income for investors in Auckland based LiveScribe, founded in 2007, raised 68 million, at least $ patrons from as Qualcomm, Crosslink Capital and Scale Venture Partners
To finance the acquisition, Anoto says that it has signed an agreement with Sweden accommodation Carnegie Investment Bank AB to issue 158 million shares in Anoto, to a maximum dilution of 15%. Anoto also adopted a short-term loan in the amount of $ 2.9 million (25 MSEK).
Livescribe was one of the first leaders in the technology of the smart pen – and by default, one of the pioneers in the whole Internet of things and turning the “dumb” objects related pieces of hardware
But it also faced some significant stumbling. Among them, he lost a trademark case in 2013 against the British pay-TV company BSkyB over the use of “Sky” for one of its models WiFi-connected pen. In turn, WiFi Smartpen sky was renamed the more pedestrian “WiFi SmartPen.”
Livescribe sells its business operations, technology and intellectual property. “Livescribe brand and the existing infrastructure will be preserved in order to strengthen the position of both companies through the development and implementation of new products,” the company said in a separate joint statement.
purchasing LiveScribe, Anoto products is expanding development and sales.
“LiveScribe acquisition is another important step in strengthening the ecosystem Anoto and implementing synergies in hardware and software, the development of supply chain and operations, as well as the distribution of sales,” said Stein Revelsby, CEO of Anoto, the statement said. “We are already working on a new range of products will be launched in the channels LiveScribe sales in 2016.”
“Together with Anoto, we see a huge potential for Smartpen technology to expand the consumer market and for writing and drawing on paper,” said Gilles Bouchard , CEO LiveScribe in the same statement. “We have had successful cooperation with Anoto as licensing Livescribe was founded, and I am confident that, by becoming a part of Anoto Group will strengthen the position LiveScribe in the consumer market and will allow us to spend a lot of interesting new features in the coming years.”
The Swedish company has in the past worked to provide digital solutions for any kind of writing, from music to interactive displays, and big walls. Livescribe more about the development of portable stylus for small surfaces. This narrowed focus may have been an incentive for the development of quality, but it may also have been one of his problems, as a company, given the large amount of competition in this space, from other start-ups, such as the paper in large technology companies such as Apple , develops its own “native” digital “pen.”
It seems this is the first acquisition in Anoto.