A French cosmetics company is acquiring a Canadian beauty technology company. Specifically, L’Oreal (EPA:OR) announced on Friday that it is purchasing Toronto-based ModiFace for an undisclosed amount.
What Do We Know?
It appears the acquisition is still relatively under wraps, and despite confirming today that L’Oreal will be buying Modiface, neither companies disclosed the financial terms. What we do know is that L’Oreal is interested in acquiring Modiface because it is looking to launch more digital services, like virtual make-up tests.
For those who don’t know, ModiFace is a beauty technology company that focuses primarily on artificial intelligence (AI) and augmented reality (AR). These are two fields that have become immensely popular as of late, so I’m not surprised to see a company like L’Oreal making a move into these industries. Further, ModiFace takes AI and AR and applies them to the beauty industry, so acquiring ModiFace is bound to allow L’Oreal to get innovative. After all, incorporating AR and AI in the beauty sector is going to change the shopping experience for makeup lovers around the globe.
Not only does ModiFace use AI and AR, but the team at the firm is composed of some of the most intelligent individuals in Canada. Specifically, ModiFace employs roughly 70 scientists, researchers, and engineers, all of which have submitted over 200 scientific publications. The take away from that is that you can trust this company to be a credible source.
This, of course, isn’t the first technology-based item L’Oreal has produced. The French company, who is the world’s biggest cosmetics company, has previously worked with ModiFace, which is most likely when its interest in the company first sparked. Earlier in 2018, L’Oreal launched an application developed by ModiFace, called “Style My Hair.”
It appears the market is looking forward to the acquisition. The L’Oreal stock was last seen trading up $0.30 on the Euronext Paris Exchange.
Featured Image: twitter
