PTC Inc. (NASDAQ:PTC) has announced the Vuforia acquisition deal from Qualcomm, Inc.’s (NASDAQ:QCOM) subsidiary, called Qualcomm Connected Experiences, Inc., for $65 million. The company has signed a definitive agreement with Qualcomm’s subsidiary. The deal is likely to be completed by the year end, and include developer ecosystem along with more than 20,000 apps.

Vuforia is one of the most widely-adopted and advanced technology platforms for augmented reality (AR). It is supported by a global developer ecosystem in 130 countries. Vuforia enables apps to connect and see the real world with digital experiences, and demands drive engagement, demand attention, and value delivery.

Moreover, it is a five-year old mobile vision platform that supports various developer tools, which include xCode, Eclipse, and Unity. It runs on numerous operating systems (OS), such as Android and iOS.

On the other hand, PTC is an Internet of Things (IoT) company. It is a world-wide solution and technology platform provider. PTC intends to team up with Vuforia for its IoT and analytics platform. It seems that the main reason behind the acquisition is to create a joint platform for IoT and AR. The company is inclined to invest in Vuforia, and for its ecosystem’s continued growth and support.

PTC CEO Jim Heppelmann said: “PTC continues to pursue a strategy of providing an incredibly innovative technology platform that customers can use to capitalize on the emerging Internet of Things (IoT).”

Vuforia’s annual revenue is not significant in terms of PTC’s financial results. Furthermore, the acquisition is not expected to impact fiscal year 2016 (FY16) non-GAAP earnings per share (EPS). We believe that acquisition will strengthen PTC’s technology portfolio.