NetDragon has continued its investments with Cherrypicks team, acquiring the company’s augmented reality business, Cherrypicks Alpha.
NetDragon, a Chinese online gaming and mobile app developer, acquired the mobile solutions business of Cherrypicks for US$30.5 million in June 2014.
This latest acquisition will see NetDragon take a 100% stake Cherrypicks Alpha for US$6 million in cash and NetDragon shares. Additionally, NetDragon said it will inject a further US$12 million into to accelerate the Cherrypicks business in Asia.
Jason Chiu (pictured), CEO of Cherrypicks, said augmented reality is set for significant growth. He noted a recent Goldman Sachs report which said the global VR and AR market would grow to an estimated US$80 billion by 2025.
“We are working diligently to leverage this technology to further develop large scale solutions for shopping malls, airports, retail shops and major venues,” he said.
Chiu will retain his position as CEO of Cherrypicks Alpha’s AR unit following the merger.
NetDragon said it plans to integrate Cherrypicks Alpha’s augmented reality technology into its online education and gaming businesses.