Qualcomm sells Vuforia unit for $65 million

Qualcomm said Monday it is selling its 5-year-old Vuforia augmented reality business to computer-aided-design software firm PTC for $65 million.

The move highlights Qualcomm’s recent efforts to focus on its core mobile chip and wireless technology licensing businesses in a maturing smartphone market.

For Needham, Mass.-based PTC, the deal gives it an augmented reality platform, which it aims to fold into its Internet of Things app software.

The sale is expected to be completed at the end of this year. PTC plans to extend offers to all Vuforia employees, according to Qualcomm. The company declined to say how many workers are involved.

Qualcomm’s augmented reality technology uses mobile device cameras to recognize a tag in the field of view. Then digital objects pop up on the screen and interact with the real world background.

It’s popular with app developers in the gaming and toy markets. For the FIFA World Cup, McDonald’s used Vuforia for its GOL! App. Customers pointed their smartphone cameras at french fry boxes and up popped a virtual soccer ball and goal on the cell phone screen. Players swiped the ball to take a shot. Lego Connect developed apps that used Vuforia to show virtual Lego designs.

Vuforia also has been used in apps beyond gaming. Epson developed prototype smart glasses with an app that superimposed step-by-step instructions on the lenses for assembling a motor.

Vuforia has been incorporated into 20,000 apps worldwide. Its annual revenue isn’t enough to impact PTC financial results, the company said.

Vuforia’s augmented reality platform was part of Qualcomm’s efforts in computer vision, where sensors allow devices to identify what’s around them. A company spokeswoman said Qualcomm remains committed to research and development of computer vision technology.

PTC makes software for computer-aided product design, product lifecycle management and model-based engineering. It also makes a software platform called ThingWorx for apps used on Internet of Things products.

“Vuforia will accelerate our leadership position helping companies to fundamentally change the way their products are created, operated, and serviced,” said PTC Chief Executive Jim Heppelmann in a statement. “We are excited about leveraging Vuforia’s technology leadership in the consumer market while unleashing the Vuforia capabilities into the enterprise.”