The Glimpse Group, an enterprise-level augmented reality and virtual reality (AR/VR) platform provider, entered into a definitive agreement to merge Brightline Interactive, an immersive technology provider, into a Glimpse subsidiary. Post-merger, Tyler Gates, CEO of Brightline Interactive, will join the company as the general manager and be a part of Glimpse’s executive team.  

According to the terms of the agreement, the potential purchase price was USD 32.5 million, with an initial payment of USD 8 million in a mix of cash (USD 3 million) and equity (USD 5 million). The remaining value of USD 24.5 million (75% of the potential price) is based on conditional clauses on the achievement of revenue growth targets over a three-year period. 

The merger is expected to 1) increase Glimpse’s annual revenue by ~33%; 2) achieve a potential revenue run rate of USD 15 million, reportedly making Glimpse one of the largest independent VR and AR solutions; 3) significantly improve Glimpse’s scale of business (operational and financial), supported by synergies across its ecosystem of subsidiary companies; 4) improve its position and capabilities as a direct contractor to the government and Department of Defense, and bringing its total issued VR and AR patents to nine; 5) and increase its headcount to more than 175, which includes immersive-tech software developers, engineers, and 3D artists. 

Brightline Interactive also reported revenue growth of ~25% YoY to USD 5 million in FY2021. Its gross margin ranged between 50% and 55% in FY2020 and it reported a marginal positive cash flow from operations. 

Brightline Interactive offers a proprietary platform to create, build, integrate, and support immersive solutions, scenario-based training, and simulations for government and enterprise customers.