Details were not disclosed, but TechCrunch reported that the maker of wearable devices such as the Basis B1 fitness band went to Intel for about $100 million.
Coming on the heels of the 2014 Consumer Electronics Show, where Intel Chief Executive Officer Brian Krzanich spent most of his keynote showing off prototype wearable tech devices, it's evident that the legendary chipmaker is hell-bent on not missing out on this market the way it did with smartphones and tablets.
"Brian Krzanich has been really clear – if it's a computer, we want Intel inside," Steven Holmes, the vice president of Intel's New Devices Group, told Wearable World News. "Wearables is the next stage of computing which is going to be very personal."
While the purchase of a device maker may seem out of character for a company known for making the chips that power tech devices, it's part of a notable shift in Intel's strategy.
Santa Clara, Calif.-based Intel missed out on the mobile wave because its chips simply were not as suited for the demands of mobile computing as were those of its competitors, particularly designs based on technology licensed from ARM Holdings (Nasdaq ADR: ARMH).
Intel says its wearable technology prototypes are intended as "reference designs" to help third-party device makers develop new products.
But it's at least as likely that Intel wants plenty of hands-on experience with wearable tech devices to ensure that the chips they design for this market will match the requirements better than anyone else's.
Buying a company loaded with engineers who have spent a lot of time figuring out which are the best chips to put in a wearable tech device will be a huge asset for Intel.
Basis Science, by the way, uses chips made by Texas Instruments Inc. (Nasdaq: TXN), not Intel. That's the sort of design decision Intel intends to reverse.
And just as importantly, Basis also happens to be focused on an area of wearable technology that will almost certainly prove to be the most lucrative…
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Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.