Razer seems keen on expanding beyond its current market which mainly consists of hardware and software for the gaming industry. Just three months after purchasing THX, the audio tech company, Razer has already acquired Nextbit Systems Inc., the startup company which developed the Robin smartphone.
The company was founded by former Android developers which were hoping to reimagine the smartphone, with technologies that focused on cloud storage. Although the company’s Robin smartphone was not as successful as the developers hoped, the acquisition by Razer promises to breathe new life into the startup.
The financial terms of the deal have not yet been disclosed, though the deal was completed earlier this month. However, several sources stated that the deal involved a decent equity portion, considering that Nextbit Systems were able to raise almost $20 million.
Min-Liang Tan, the co-founder, and CEO of Razer has stated that they will be bringing over the entire 30 staff members from Nextbit. Furthermore, Razer is interested in building products under the Nextbit brand, which will continue to function as its own business unit.
However, the Razer deal did not include the startup’s Robin phone, as it was no longer even being sold by the company anymore either. However, Nextbit has stated that they will continue to support to a device for at least six months.
Neither company unveiled any future plans or specifics about what products we can expect. Min further stated that regarding Nextbit, Razer was particularly interested in the software and design talent and potential. However, a look back of another one of Razer’s acquisitions, OQO, reveals that this served as the company move into the laptop market with several products meant to appeal to gamers. Therefore, we may soon see a Razer smartphone trying to capitalize on the growing and very profitable market of mobile gaming.
Tom Moss, the co-founder, and CEO of Nexbit has stated that a number of other companies were interested in the startup, some which were interested in the hardware or software part of the company. However, he was particularly excited about Razer’s offer since Nextbit can continue to work on both domains.
What do you think about Razer’s acquisition of Nextbit Systems?
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