Snapchat has reportedly made a huge investment, all the way in Isreal.The company is now the proud parent company of Israeli-based Cimagine Media paying a hefty price tag valued about $30 to $40 million.
The company will also keep on board more than 20 employees already working at the company. This acquisition will allow Snapchat to establish its first development center in the Middle East.
Cimagine came into existence four years ago and specializes quite a few applications such as computer vision and real-time image processing as well as mobile development. The company also offers international marketing and other technology-driven services.
Additionally, Snapchat core application depends heavily on augmented reality services, and with acquiring Cimagine the company will embolden its focus on a wider range of commerce. Snapchat will have the capacity where it can offer a public offering on the stock exchange.
Next year, it’s quite possible that doing facilitating shopping through Snapchat might open up additional revenue opportunities for the tech company.
Cimagine already has partnerships with numerous companies, it also wants to help other businesses tap into the potential of augmented reality. This will eventually allow Snapchat to acquire partnership with several large retailers such as department stores.
Merchants and store owners may want additional advertising opportunities to enhance the potential of what Cimagine’s technology and its team could bring to the proverbial table.
Or perhaps Cimagine’s team will help Snapchat improve laying objects over photos and videos captured through Snapchat.
Should an IPO be in its future, Snap needs to remain one step ahead of Facebook which has been rapidly copying features from Snapchat. Investors are looking for real market leadership so Snap’s acquisition of camera technology, especially focused around augmented reality, could give the technology company a leg up on its main competitors.
Snapchat has been very busy recently snapping up acquisition left, right and center. It is left to be seen what other profitable startup the company will go snapping after next.