It has been announced this week that digital pen maker Livescribe has been acquired by Sweden’s Anoto in a deal worth $15 million.
Anoto, the digital writing company based out of Sweden, has been a long-time partner of Livescribe, and the all-cash deal is expected to be finalized before the end of this month.
About Livescribe
Livescribe is a paper-based computing platform that uses a combination of a smartpen, dot paper, and software applications. This innovative technology provides a unique way to capture ideas, sketches, and notes in both a traditional paper-based format and digital reproduction using a companion smartphone application. The smartpen records everything you write or draw on the dot paper, and the data can be transferred to your digital devices, making it easy to organize, share, and store your notes.
Livescribe’s technology has been particularly popular among students, professionals, and creatives who value the tactile experience of writing on paper but also need the convenience of digital storage and sharing. The smartpen can also record audio, which can be synchronized with your written notes, making it an invaluable tool for lectures, meetings, and brainstorming sessions.
The Acquisition Details
The Tech Crunch website reports:
This is a bargain of sorts, but a poor return for investors: Oakland-based Livescribe, founded in 2007, had raised at least $68 million from backers like Qualcomm, Crosslink Capital, and Scale Venture Partners.
To finance the acquisition, Anoto says that it has signed a placement agreement with Sweden’s Carnegie Investment Bank AB to issue 158 million shares in Anoto, for a dilution of a maximum of 15%. Anoto has also taken a short-term loan of $2.9 million (25 million Swedish crowns).
The acquisition by Anoto is seen as a strategic move to consolidate its position in the digital writing market. Anoto’s technology, which includes digital pens and paper, complements Livescribe’s offerings, and the merger is expected to lead to new innovations and products that leverage the strengths of both companies.
Anoto has been a pioneer in the digital writing space, with its technology being used in various industries, including education, healthcare, and business. The acquisition of Livescribe will allow Anoto to expand its product portfolio and reach a broader audience.
The deal also highlights the challenges faced by startups in the tech industry. Despite raising significant funding and developing innovative products, Livescribe struggled to achieve profitability and scale its business. The acquisition by Anoto provides a lifeline for the company and its technology, ensuring that it will continue to be developed and supported.
The acquisition of Livescribe by Anoto marks a significant development in the digital writing market. The combined expertise and technology of the two companies are expected to lead to new and innovative products that will benefit users across various industries. While the deal may not have provided the return that Livescribe’s investors had hoped for, it ensures the continued development and support of its technology, which has the potential to revolutionize the way we capture and share information.
Source: Tech Crunch
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