Intel's RealSense Division Acquired by Cognex for Over $600 Million

Intel's 3D vision division, RealSense, is being sold to American company Cognex for over $600 million, marking a significant turnaround for the Israeli-based unit that was once on the verge of closure. RealSense, which develops technology enabling robots to perceive and understand their surroundings, has become a highly sought-after entity in the robotics field within a short period.

Approximately two years ago, Nadav Orbach arrived to manage RealSense in the U.S. and discovered the division was slated for closure. Orbach advocated for its continuation, securing external investment after approaching former Intel CEO Pat Gelsinger. This allowed RealSense to separate from Intel and operate independently.

RealSense raised $50 million at a $102 million valuation, with Intel Capital among its investors. The company experienced rapid growth, forming a partnership with Nvidia and becoming a key vision technology supplier for robotics firms in sectors such as humanoid robots, warehouses, agriculture, and robotic arms. Currently, RealSense employs 180 people, 140 of whom are in Israel, and anticipates revenues between $80 million and $90 million this year.

Under the terms of the acquisition, Cognex will pay over $600 million for RealSense, including $500 million in cash for shareholders and investors. An additional $106 million will be allocated to employees in the form of stock, cash, and options. It is estimated that at least 80 employees in Israel will each receive over one million shekels.

Cognex intends to maintain RealSense's operations in Israel as a distinct division and is considering establishing a local development center. They expressed strong interest in opening a development center in Israel and conducted a thorough tour of Jerusalem, showing significant enthusiasm for the prospect.