StretchSense, a New Zealand-based wearable sensor manufacturer backed by e-commerce firm StartToday, has been sold into new ownership having fallen into administration in July 2019, the New Zealand Herald reported yesterday.
The New Zealand-based buyer was not identified in the report but it has reportedly signed an unconditional agreement to purchase StretchSense for an undisclosed sum next week.
Founded in 2012, StretchSense produces sensors that can be affixed to garments to form wearable technologies for applications including sports technology, health monitoring and motion capture.
StartToday had planned to acquire the company but those plans were halted in April 2018, resulting in 140 job losses. It owned a 39.9% stake and was permitted to buy the remaining equity at a $120m valuation under an option agreement that expired in September 2018.
StretchSense will reportedly continue research and development following the acquisition, focusing on the production of stretchable sensors and motion capture gloves. Its founder and director, Ben O’Brien, will remain with the business.
StartToday paid $20m for the aforementioned option in November 2017, having previously supplied an undisclosed amount of series A funding for the company the year before.
StretchSense had already raised an undisclosed amount of seed capital from New Zealand Venture investment Fund and Flying Kiwi Angels.
The company also counted Auckland UniServices, the tech transfer arm of University of Auckland, among its backers along with government-owned innovation agency Callaghan Innovation and angel investor Ralf Muller.
The original version of this article appeared on our sister site, Global University Venturing.