Kopin divests in wearables company acquired by Intel
Courtesy of Business Wire
Westborough-based wearables technology company Kopin Corp. said it has divested its equity interest in Recon Instruments, a Canadian company that makes wearable displays for skiers, cyclists and runners, after it was acquired by Intel Corp.
Kopin, a public company, said it expects to receive $6 million in cash proceeds for its interest, subject to certain closing conditions.
Intel announced the acquisition on its blog on June 17. The post said Recon was “formerly an Intel Capital portfolio company,” and that Intel had “gotten to know and admire their products and people over the last couple years.”
Kopin officials saw something special in the company, too. CEO John Fan said in a statement that the company was an “early investor” in Recon, and that Kopin had “shared (Recon’s) vision for head mounted wearable technologies.”
“Their acquisition by Intel is further evidence to us that the head-mounted wearable technology segment will grow significantly. We believe this transaction will allow Recon to capitalize on their talents and technology,” Fan said.
Recon founder and CEO Dan Eisenhardt said in a statement that the acquisition is a “tremendous opportunity” for the company, and a “pivotal event in the consumer electronic industry. He said Intel CEO Brian Krzanich made a “clear commitment” to the wearable technology industry shortly after assuming the position in 2013.
“As part of Intel, we’ll have the resources to continue the mission we began with the creation of Recon in 2008, but with a level of efficacy and speed that’s beyond the reach of a pioneer in a new market,” Eisendhardt said.
Intel, a California-based company with operations in Hudson, did not disclose the price of the Recon acquisition.
Kopin serving consumer-facing companies
Meanwhile, Kopin Corp. is poised to capitalize on the same opportunity Recon and Intel foresee. A longtime maker of tiny digital displays for a range of equipment that includes military weapons and digital cameras, Kopin refocused itself in 2013 to the consumer wearables market.
Rather than sell directly to consumers, the company is focused on developing the technology that’s used in wearable devices and then selling it to consumer-facing companies.
"We look at problems we see in the market that aren't being solved," Stuart Nixdorff, Kopin’s senior vice president of sales and marketing, said in an interview in March.
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