North Wearables, a Canada-based augmented reality (AR) glasses developer backed by chipmaker Intel and e-commerce and internet group Amazon, is seeking a buyer, people familiar with the matter have told Bloomberg.
The company has been discussing an acquisition with a range of interested parties since mid-2019, though none of the potential acquirers were identified in the report. Investment bank Goldman Sachs is reportedly advising North during the process but neither party has commented on the process.
Founded in 2012 as Thalmic Labs, North has created AR glasses that display information to the wearer only, and which can be controlled using smart assistants such as Amazon’s voice-activated Alexa.
The company has stopped taking orders according to Bloomberg, having only sold a few thousand units to date. It has enough capital left to maintain operations until July this year, one of the sources said.
North’s decision to find a buyer seemingly followed the trade war between the US and China which led to increased tariffs, reducing its already thin margins. Discussions have intensified due to the impact the Covid-19 pandemic has had on the supply chain.
The company has raised a total of $170m according to its website, though a statement following its last publicly disclosed round, when it secured $120m in 2015, put the figure at $140m. Debt financing and grant funding secured by North would increase the $170m figure to at least $204m.
Intel and Amazon co-led the 2015 round through investment vehicles Intel Capital and Alexa Fund, together with Fidelity Investments Canada, a local subsidiary of financial services and investment conglomerate Fidelity.
Spark Capital, First Round Capital and iNovia Capital also took part in the 2015 round, which followed a $14.5m series A led by Intel Capital in 2013 and backed by Spark Capital, First Round Capital, Formation 8 and FundersClub. North’s earlier backers include incubator Y Combinator and assorted angel investors.
Image courtesy of North Wearables.
