Meta (formerly Facebook) has undergone a radical transformation in recent years from a social networking conglomerate to a technology company that prioritizes the metaverse. A key element of this strategic shift has been an aggressive acquisition strategy designed to secure cutting-edge technologies, talent and intellectual property in virtual reality (VR), augmented reality (AR), artificial intelligence (AI) and customer experience. This article examines Meta's acquisitions from 2020, highlighting the strategic underpinnings of each move and the broader implications for the technology industry.

2020: Laying the foundation for space computing

Scape Technologies (February 2020): Scape Technologies a UK-based computer vision start-up, focuses on localization for urban-scale augmented reality. The acquisition strengthens Meta's ability to create hyper-accurate spatial maps, a key component of AR navigation and persistent digital environments.

The company was developing technology capable of determining the location of devices more accurately than GPS, using images and videos to create detailed 3D maps. This technology was integrated into Meta's augmented and virtual reality initiatives, improving positioning accuracy in urban environments and contributing to the development of 3D maps for AR and VR applications.

Sanzaru Games (February 2020): Known for its VR title Asgard's Wrath, Sanzaru Games brought AAA VR development expertise to Meta. This acquisition was intended to consolidate Meta's Oculus Studios portfolio and strengthen its virtual reality initiatives.

Giphy (May 2020): Meta acquired this leading animated GIF search and sharing platform for approximately $400 million. Although not VR-specific, this acquisition provided Meta with a rich multimedia library to enhance visual communication across Facebook, Instagram and WhatsApp and boost user experience with engaging visual content. The integration of Giphy supports Meta's broader goal of mastering expressive digital communication.

Mapillary (June 2020): Mapillary's crowdsourced street-level imagery platform enhances Meta's mapping capabilities, refining its mapping and navigation services. Similarly, it powers spatial computing and AR applications and complements Scape technologies for a holistic understanding of real-world environments.

Lemnis Technologies (September 2020): Meta acquired Lemnis Technologies, a Singapore-based startup specializing in varifocal lens technology for virtual reality (VR) devices, with the goal of advancing the development of more advanced optical solutions for its VR devices and improving the user experience by addressing the convergence-accommodation conflict.

The acquisition supports Meta's hardware roadmapfor next-generation HMDs, enhancing user comfort and realism.

Kustomer (November 2020): Meta's acquisition of Kustomer was completed for approximately $1 billion. Kustomer is an omnichannel customer care CRM platform, so the acquisition enables Meta to provide enterprise customers with enhanced messaging tools and paves the way to monetize WhatsApp and Messenger more effectively.

2021: Meta strengthened its immersive and AI capabilities

Unit 2 Games (June 2021): The UK studio behind Crayta, Unit 2 Games is a collaborative game creation platform. Its tools democratize game development and support Meta's ambition to enable user-generated content in the metaverse. This acquisition aims to expand the categories of content creators in Meta Gaming, enabling users to develop and share game experiences without programming.

AI.Reverie (October 2021): AI.Reverie, a synthetic data company, helps train machine learning models. This supports Meta's AI ambitions in AR, moderation and personalization, enhancing both its capabilities in synthetic data generation and supporting the development of immersive and advanced experiences on its virtual reality platforms and increases

Within (October 2021): Within develops immersive VR experiences for fitness. The acquisition capitalizes on wellness trends and expands Oculus Quest's content offering beyond gaming, making VR more appealing to the general public.

The transaction was part of Meta's strategy to expand its content and experience offerings within its virtual reality platform, particularly in its metaverse vision. Within's team joined Meta to continue developing VR experiences focused on wellness and mental health, further aligning Meta's capabilities in its approach to the future of virtual reality.

ImagineOptix (December 2021): ImagineOptix is a company specialized in optical technology for augmented reality (AR) and virtual reality (VR), and creates thin optical films for low-power projectors. This technology contributes to the development of lightweight, low-power augmented reality glasses, aligning with Meta's hardware miniaturization goals.

2022: Refining haptics, gaming and personalization

presize.ai (Apr 2022): This company develops advanced body scanning technology using computer vision.

Meta's acquisition of Presize has significant implications for fashion e-commerce and augmented and virtual reality experiences. Presize's technology could be integrated into Meta's platforms, such as Facebook and Instagram, allowing users to easily find clothes that fit their measurements, improving the online shopping experience and reducing product returns. This acquisition supports Meta's ambitions in avatar personalization and digital fashion, essential for immersive commerce in the metaverse.

Lofelt (Sep 2022): Lofelt develops next-generation haptic technology that enables richer, more tactile VR and AR experiences. By internalizing this technology, Meta can deliver more realistic sensory feedback, enhancing immersion and interaction, while boosting sensory experiences on its VR and augmented reality (AR) platforms.

Camouflaj, Armature Studio and Twisted Pixel Games (October 2022): This triple acquisition of experienced game studios marks Meta's push toward exclusive VR content. Camouflaj (known for Iron Man VR), Armature (former developers of Metroid Prime), and Twisted Pixel (creators of Wilson’s Heart) enhance Meta’s content catalog. Their expertise ensures high-quality first-party titles to attract and retain users with more immersive and diverse gaming experiences on its platforms.

Luxexcel (diciembre de 2022): Luxexcel está especializada en la impresión 3D de componentes ópticos, como lentes graduadas integradas con guías de ondas para gafas de realidad aumentada. Esta adquisición respalda la estrategia de Meta de invertir en innovación en hardware, permitiéndole avanzar en el desarrollo de gafas inteligentes con prescripción y capacidades AR.

2023: Investments in visual technologies

Luxexcel (December 2022): Luxexcel specializes in 3D printing of optical components, such as prescription lenses integrated with waveguides for augmented reality glasses. This acquisition supports Meta’s strategy of investing in hardware innovation, enabling it to advance the development of smart glasses with prescription and AR capabilities.

This acquisition aims to enhance the optical systems in the company's augmented reality and virtual reality devices, reinforcing its commitment to the development of advanced technologies for the metaverse.

Strategic issues and industrial implications

Investment in infrastructure and metaverse devices

Meta's acquisitions show a clear intent to own the hardware stack. Companies such as ImagineOptix, Luxexcel, Lemnis Technologies and Gary Sharp Innovations bring foundational IP to make AR glasses and VR headsets more wearable, visually accurate and power-efficient.

Content and commitment

Studios such as Sanzaru, Twisted Pixel, Camouflaj and Armature ensure that Meta controls the development of flagship VR experiences. This reflects the console wars approach to exclusive titles, aimed at accelerating user adoption of Quest devices.

Empowering AI and simulation systems

With AI.Reverie and presize.ai, Meta is strengthening its AI capabilities, crucial for avatar realism, moderation, simulation and data personalization. Synthetic data is especially valuable, as privacy regulations limit real-world data collection.

Improving customer experience and monetization

The integration of Kustomer allows Meta to build a business platform that monetizes chat applications, targeting the growing trend of conversational commerce. This move also diversifies revenue streams away from advertising.

Investment in haptics and immersion

Lofelt's haptic technology and Within's fitness-focused content enhance sensory richness and physical interactivity, two cornerstones of engaging virtual environments.

Spatial and environmental understanding

Scape Technologies, Mapillary and Unit 2 Games provide spatial mapping, crowdsourced imagery and user-generated content creation tools, establishing Meta as a central platform for shared and persistent virtual worlds.

The future of the metaverse: Metavision of Meta on the move

Meta's post-2020 acquisition spree underscores its methodical approach to building the metaverse. It is acquiring the talent, tools and technologies needed to realize Mark Zuckerberg's vision of a fully immersive digital universe where people work, play and socialize. Acquisitions span the hardware, content, AI and customer experience, collectively enabling Meta to control both the infrastructure and the experience layers of this new digital frontier.

In the broader technology ecosystem, Meta's mergers and acquisitions have intensified competition, provoked regulatory scrutiny, and forced other large technology companies to accelerate their own spatial computing strategies. For startups, this presents both an opportunity and a challenge: integration into the Meta ecosystem offers scale and funding, but independence may be increasingly rare in this race to the metaverse.

As the landscape evolves, these acquisitions will serve as the foundation for Meta's metaverse architecture, defining not only the future of the enterprise, but potentially the future of human interaction online.

Our specialist M&A advisors in the tech sector have also conducted an analysis of Google (Alphabet)’s acquisitions over the past two years, as well as Microsoft’s strategic acquisitions from 2022 to 2024, and Amazon’s strategic acquisitions in 2024. If you would like to inquire about our advisory services for company mergers and acquisitions, feel free to contact us.