Microsoft plans to buy $200 million for osterhout design Group to cut into wearable equipment market

According to the U.S. technology blog TechCrunch, Microsoft plans to spend 200 million of dollars to buy osterhout design Group (ODG) company's assets and patents to cut into the current hot wearable equipment market.

In the wearable equipment market, when Google has smart glasses and Apple's rumored smart watch is on the horizon, Microsoft seems intent on buying it. It is reported that, in addition to Microsoft, Google, Samsung and LG are interested in acquiring ODG, but Microsoft's "offensive" the most violent.

ODG, a longtime contractor for the U.S. military in San Francisco, appears to be a little low-key in the consumer electronics sector. At present, the negotiation of the two sides is not over, but it is understood that the general direction has been set, but some details are still under discussion, including the number of patents transferred, personnel arrangements.

ODG was founded in 1999, mainly for the military to provide radar products. The media and the market do not know much about the company's information, and as far as we know, former Sequoia Capital partner and David Spector (David Spector), now a Mecommerce company, is one of ODG's investors.

Microsoft and ODG are refusing to comment on the issue.

Strategic Fit

Microsoft is in the midst of a transition, and the company wants to aggressively expand its corporate and hardware markets. Microsoft believes the deal could boost the company's progress in the corporate and hardware markets, as it is reported that the deal was first initiated by Tang Matrick, the outgoing Xbox and Kinect director, ODG.

ODG has signed a 40 million to 50 million dollar contract with the military over the past few years, and the U.S. government is one of the company's biggest clients. ODG's operations include the manufacture of head-wear devices that track the location of fast moving objects and the production of devices that can see through the objects behind the walls, both for large enterprises or military markets.

Microsoft has done well in the government market, but it is mainly software business. One of the reasons the company is interested in the acquisition is that it can exploit the hardware market. In Microsoft's transformational goals, hardware is a business that the company attaches great importance to.

It is reported that ODG is currently developing a pair of glasses, but not for Google glasses, in fact, the glasses also adopted the Android operating system.

In addition to strategic alignment, Microsoft also attaches great importance to ODG's patent portfolio. It is reported that ODG's patent involves "all products related to wearable equipment such as Google Glasses".