Intel buys Mobileye in US$15 billion deal
Intel has announced that it is to acquire Mobileye, a leader in computer vision for autonomous driving technology, for US$15.3 billion — the biggest-ever acquisition of an Israeli tech company.
Under the terms of the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for US$63.54 per share in cash, representing a fully-diluted equity value of approximately US$15.3 billion and an enterprise value of US$14.7 billion, said an Intel statement.
Mobileye today covers a range of technology and services, including sensor fusion, mapping, front- and rear-facing camera tech and, beginning in 2018, crowdsourcing data for high-definition maps, as well as driving policy intelligence underlying driving decisions. This deal will bring under Intel’s umbrella not only a much bigger range of the different pieces that go into autonomous driving systems, but also a number of relationships with automakers. Mobileye has contracts with 27 car manufacturers, including 10 production programs with Audi and BMW.
“This acquisition is a great step forward for our shareholders, the automotive industry and consumers,” said Brian Krzanich, Intel CEO, in a statement. “Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”
“We expect the growth towards autonomous driving to be transformative. It will provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers,” Ziv Aviram, Mobileye co-founder, president and CEO, added. “By pooling together our infrastructure and resources, we can enhance and accelerate our combined know-how in the areas of mapping, virtual driving, simulators, development tool chains, hardware, data centers and high-performance computing platforms. Together, we will provide an attractive value proposition for the automotive industry.”
Mobileye and Intel are already working together, along with BMW, to put 40 test vehicles on the road by the end of 2017. Intel predicts that the driverless market will be worth up to US$70bn by 2030.