Sweden-based company Anoto has successfully acquired Oakland-based digital penmaker Livescribe. The writing company confirmed that the smart pen purchase is an all-cash agreement that is based on a US$15 million enterprise value. The deal is expected to close successfully by the end of November.
Founded in 2007, Oakland-based Livescribe had backers like Scale Venture Partners, Crosslink Capital, and Qualcomm. With the support, the smart pen company was able to raise US$68 million.
On the other hand, Anoto has signed a placement agreement to finance the acquisition. The Carnegie Investment Bank of Sweden issued 158 million worth of shares to the digital writing company with a reduction of 15 per cent maximum, enabling the company to acquire Livescribe.
Livescribe was one of the pioneers in stylus technology. By default, they are one of the early birds in the whole IoT concept, turning dumb objects to connected hardware pieces. The company also faced issues during its days. Among the big issues were against UK pay-television company BSkyB for a trademark case in 2013. The smart pen company lost the case along with the Sky Wi-Fi smartpen intellectual property, leading the company to sell its business operations and technologies.
Through this acquisition, Anoto will be able to broaden its horizons in terms of product development and sales. The smart pen company will still be able to retain its existing infrastructures plus strengthening both the companies' positions through sales and development of new merchandise.
The digital writing company of Sweden has worked with the smart pen makers of Oakland in the past. It has hand-in-hand provided solutions for any sorts of digital writing from simple notes to interactive large wall displays. With the two companies joining forces, a huge potential opens for their technology to go beyond consumer market. It enables both companies to pursue new exciting opportunities that broaden their ingenuity through working together not just a partner but as a family.
