Russian tech firm Intema by MTS Artificial Intelligence (AI) has inked a deal to buy out 100 percent of VisionLabs for roughly $100 million USD, the firm announced on Monday.
Headquartered in Amsterdam, Singapore, and Moscow, VisionLabs hosts a team of computer vision and machine learning (ML) specialists who develop products such as augmented and virtual reality (AR/VR), face and object recognition, and other tech solutions.
According to the Moscow-based firm, an AI subsidy of Russia’s biggest telecoms firm MTS PJSC, the final valuation of the agreement would be subject to a three-year evaluation of performance metrics for the acquired company.
VisionLabs is set to become the largest asset for Intema, MTS AI’s marketing and executive wing for its global AI solutions.
The Intema Group, the AI subsidiary of MTS AI, has acquired VisionLabs for around $100 mln which as of now becomes the largest portfolio company of the Intema Group. A. Khanin remains Chairman of the VisionLabs Board of Directors.#MTSai #Intema pic.twitter.com/bdheLzLorI
— MTS AI (@MTSaic) December 13, 2021
Details of the agreement include a 100 percent equity stake in VisionLabs from existing shareholders, which previously consisted of its founders, group companies from Russian banking giant Sberbank, and Sistema PJSFC venture fund SistemaVC at 51.77 percent, 25.07 percent, and 23.16 percent, respectively.
Viacheslav Nikolaev, MTS President and Chief Executive, said MTS AI aimed to create a “powerful center of excellence in [AI]” to unite talent, expertise, and product development.
He continued, stating,
“The acquisition of VisionLabs will reinforce our AI product portfolio in the promising computer vision space, which will enable us to further enhance the potential of the MTS digital ecosystem, as well as deliver world-class solutions for corporate clients in both Russia and abroad”
According to Alexander Khanin, Chief Executive of MTS AI, advancements in AI would become a “key driver” for business and social development over the next few years.
He added his firm was “taking advantage of this window of opportunity” by building Intema to identify “promising AI-based concepts and product ideals” to launch with investor and expert backing.
He concluded,
“Looking ahead, we aim to create new breakthrough products at the intersection of diverse innovations from across our portfolio. At the same time, VisionLabs will continue to operate in line with its existing team and business strategy”
Russian Support for the XR Industry
The recent moves from MTS come amid Russia’s push to build its national XR industry as well as develop solutions aimed at its domestic market, namely amid skyrocketing demand in global markets.
Competition among XR firms skyrocketed in August after Mark Zuckerberg, Meta Chief Executive and Founder, announced Facebook would shift to becoming a Metaverse firm and subsequently rebranded the enterprise to Meta Platforms, Inc in late October, sparking a tech race across the industry.
Russia has aimed to develop its domestic VR building capabilities via several key firms such as CVisionLabs, hardware and games developer Fibrum, Blockchain firm MARK.SPACE, and numerous others, according to investment research and tracking firm Tracxn.
Additionally, Russian state-owned enterprise Roscosmos revealed two prototypes for VR head-mounted displays (HMDs), the XR-1 and XR-2, later in 2021. The space aeronautics and exploration firm stated in February it would shift focus to consumer VR technologies amid unprecedented growth in the sector.
