Chinese tech giant Huawei has expressed interest in acquiring Russia’s Vocord that develops image recognition software. According to experts, the deal will cost between $2-3 mio and $20-30 mio.
Vocord and Huawei did not comment on the news, but several sources on the IT market confirmed the future deal.
Vocord was established in 1999. The company develops software and solutions in the area of image recognition and automatic number plate recognition. Among its clients are the Russian Ministry of the Interior, the Federal Security Service, as well as banks and mobile network operators. Analysts debate on the market valuation of Vocord. Some think that the company does not cost more than $2.5 mio, while others believe that it might cost as much as $20-30 mio. The image recognition market is closely related to the video analytics market, which is only beginning to develop in Russia. By 2023, it will reach €20 mio ($23 mio). Thus, Huawei would establish a good foothold in the market. Another reason for the purchase is that the Chinese giant needs Vocord’s technology exclusively for the development of its own products. The cutting-edge technology can be used to improve security in various economic sectors.