The world’s largest software maker Microsoft Corporation (MSFT) has reportedly bought Israeli digital pen-maker N-Trig. Following the acquisition, 190 employees from N-trig will be incorporated into Microsoft Israel for a new research and development center. Per reports, the deal, which has not been confirmed by either party, cost Microsoft around $200 million.
N-Trig and Microsoft’s relationship dates back to 2009 when Microsoft carried out a $24 million investment round in the company, which made it the owner of a 6.0% stake in the company. Other investors in the company include Evergreen Venture Partners, Canaan Partners and Tamares. N-trig has raised more than $150 million in funding to date.
The firm, founded in 1999, specializes in pen technology and is a provider of digital pens and chips for touchscreens. It is the company behind Surface Pen, the digital pen for Microsoft’s Surface Pro 3 tablet.
In May 2014, Microsoft added the Surface Pro 3 to its Surface tablet family. Surface Pro 3 is the thinnest, lightest and largest laptop-tablet hybrid so far. Surface Pro 3 tablets are 2-in-1 devices which can connect with a keyboard and double as a computer. Microsoft entered into a deal with N-Trig to incorporate its pen in its Surface Pro 3 tablets replacing Wacom.
The integration of N-Trig’s technology enabled Microsoft to make the Surface Pro 3 lighter as the sensors allowed both touch and pen interaction. With the acquisition, Microsoft will not only get deeper access to the unique technology but also the basic staff for a new R&D center in Israel.
Apart from Microsoft other customers of the company include Sony (SNE), Fujitsu, Hewlett-Packard (HPQ) and Lenovo, which use its technology in smartphones, tablets and ultrabooks to make them more versatile, thereby ensuring an improved performance and a more natural writing experience.
Microsoft is battling to make a mark in the tablet market, which is at present dominated by companies like Apple (AAPL) with its iPad and Samsung with its string of Android-powered tablets.
In Sep 2014, Microsoft made its Surface Pro 3 tablet available in 25 more countries through its online store, authorized resellers and retailers. Earlier, the device was available only in Canada, the United States and Japan.
Microsoft carries a Zacks Rank #4 (Sell).
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