Intel Spinoff RealSense Sells for Over $600 Million to Cognex

RealSense, an Israeli company that was spun off from Intel just 14 months ago, has been acquired by U.S.-based Cognex for over $600 million. This acquisition marks Cognex's largest ever and its first in Israel, signaling its entry into the robot vision and perception technology market. Cognex will pay approximately $500 million in cash to RealSense shareholders, with an additional $106 million allocated to employees in the form of stock, cash, and options. Around 80 RealSense employees in Israel are expected to receive over one million shekels each from this deal.

The transaction is anticipated to close in the fourth quarter of 2026 and will be funded by Cognex's existing cash reserves. RealSense, which employs about 180 people, with 135 in Israel, will see its Israeli operations become Cognex's development hub for this field. Employees are expected to remain with the company post-acquisition.

Since becoming independent in July 2025, RealSense raised $50 million and tripled its revenues, projecting $80-90 million in revenue for 2026. The acquisition price represents a multiple of over seven times its projected annual revenue. RealSense develops depth cameras and computer vision technologies that enable robots and autonomous systems to map their surroundings in 3D, identify objects, and navigate. Its technology is used in autonomous mobile robots, robotic arms, and industrial automation systems, serving over 4,500 customers globally.

For Cognex, a Nasdaq-listed company specializing in machine vision systems and sensors, this acquisition expands its machine vision capabilities into robotics and "Physical AI." The integration aims to combine Cognex's industrial vision systems with RealSense's depth perception technology, enabling robots to understand and move within their environment. This move aligns with the growing investment in robotics driven by the expansion of AI into physical systems.

A notable aspect of the deal is the substantial compensation for employees. In addition to the cash for shareholders, the $106 million package for RealSense staff is intended to reward their contributions and retain talent. RealSense CEO Nadav Orbach highlighted the team's role in achieving rapid growth and this acquisition within just over a year of independence.

However, RealSense's facial recognition and authentication division will be separated before the deal closes and will continue as an independent company. This division develops biometric technology used at airports, banks, and office buildings, including at Ben Gurion Airport in Israel. The new entity will comprise about 25 employees from RealSense.