US-based electronic pen maker Livescribe, backed by wireless technology producer Qualcomm and conglomerate Sumitomo, is set to be acquired by its peer Anoto for $15m, TechCrunch reported today.
The cash deal is expected to close this month.
The acquisition is a low return on investment, as backers had provided approximately $100m.
Qualcomm participated in a $39m series C round in 2010, which also featured Presidio Ventures, an investment vehicle of Sumitomo, Crosslink Capital, which led the round, Scale Venture Partners, TransLink Capital, Keating Capital, VantagePoint Venture Partners, Lionhart Investments and Aeris Capital.
Founded in 2007, Livescribe has developed a digital pen that can be used with Anoto’s digital paper to record writing and upload it to a computer. The pen also includes an audio recorder to take notes and link them to specific passages in the written text.
Anoto will use Livescribe’s brand and existing infrastructure to develop new products.
Gilles Bouchard, CEO of Livescribe, said: “We have had a successful licensing partnership with Anoto since Livescribe was founded and I am confident that becoming part of Anoto Group will strengthen Livescribe’s position in the consumer market and allow us to pursue many exciting new opportunities in the years to come.”