The deal, announced Tuesday by Santa Clara, California-based Intel Corp., comes as the still-nascent market for wearable gadgets is heating up. So far, a lot of these gadgets are fitness and wellness trackers. This includes the Basis band, which tracks users' activity level, heart rate, sleep patterns and other data.
Basis Science Inc. CEO Jef Holove will now be general manager at Intel's new devices group. The Basis band will continue to be sold and the company's 60 employees will work on "future wearable initiatives," Intel said.
Intel Vice President Mike Bell said the acquisition provides Intel with an "immediate entry into the market" of wearable devices and he praised the "deep expertise" that Basis has in the area. The Basis band tracks more data than many of the competing fitness bands out there.
"Simple pedometers with lights on them aren't that interesting," Bell said.
Holove, meanwhile, said the move gives Basis access to Intel's resources at a time when there's "a lot happening" in the wearable technology market.
Intel's stock rose 2 cents to $25.48 in extended trading after closing up 34 cents at $25.46.