US machine vision and barcodes solutions company Cognex Corp. (Nasdaq: CGNX) has announced the acquisition of Israeli depth cameras and computer-vision systems company RealSense for over $600 million. Cognex will pay $500 million cash plus $56.5 million in a three-year $56.5 cash retention program at target for employees, subject to performance milestones, and $50 million in restricted stock units.
This represents a 500% return for Taiwanese investors and Intel Capital on an investment made just 14 months ago. Last year, shareholders invested $50 million based on a company valuation of only $102 million.
As part of the deal, Cognex is expected to allocate a compensation package to the company's employees, comprising stock, cash, and options, totaling $106 million. It is estimated that at least 80 of the company's employees in Israel will receive over NIS 1 million each. The company currently has 180 employees, 140 of whom are based in Israel, including 110 employees who came from Intel.
RealSense was spun off from Intel two years ago as a loss-making company generating quarterly revenues of $7-8 million (or $30-40 million annually). By the end of 2026, the company is projected to record revenue of $80-90 million and is estimated to be profitable, which contributed to Cognex's decision to acquire it and turn it into an independent division.
RealSense was Intel’s 3D vision innovation division when it was on the verge of closure. At the time in 2024, Intel was in the eye of the storm: CEO Pat Gelsinger was fighting for the company's survival amid mounting losses, growing public criticism, and rounds of layoffs and cutbacks that affected every one of the company's product lines. Gelsinger favored selling off or shutting down any operations outside the company's core business, such as the shift toward manufacturing chips for other companies. This strategy led to the closure of Granulate, an Israeli startup that developed cloud management software, which Intel had acquired in 2022 for $650 million.
The RealSense innovation lab, led by Israeli executive Nadav Orbach, was also slated for closure. However, Orbach and his team - in consultation with Gelsinger- decided to spin off the unit and sell it to a private investor group. Intel itself participated in this group through its venture capital fund dedicated to startup investments.
In July 2025, RealSense raised $50 million as an independent startup in a round led by an unnamed Taiwanese venture capital fund, alongside Intel Capital, the Taiwanese chip giant MediaTek, and the German security company Dormakaba. Since then, it has signed a partnership with Nvidia and become one of the leading vision sensor manufacturers in the robotics market, capturing over half the market share for humanoid robots, high-end industrial robots, and robotic arms.
Published by Globes, Israel business news - en.globes.co.il - on September 22, 2026.
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