Intel Acquires Mobileye for a Whopping $15.3 Billion

After the previous partnership with Mobileye, Intel has confirmed its acquisition; which is a leader in the computer vision for autonomous driving technology. Significantly, this acquisition comes as the biggest one of an Israeli tech company, at $15.3 billion.

The company noted that a subsidiary of Intel Corporation will start a tender offer; to acquire all issued and also the outstanding ordinary shares of Mobileye, for $63.54 per share in cash. This represents an equity value of about $15.3 billion and an enterprise value of $14.7 billion. The chip giant expects that this deal with Mobileye will close in around nine months.

Intel Acquires Mobileye

https://www.industryleadersmagazine.com/intel-capital-declares-investment-38-million-12-inventive-tech-startups/

Mobileye is a tech company covering a wide range of services; including front and rear facing camera tech, mapping, and sensor fusion, among others. Starting from 2018, it will also start crowdsourcing the data for high definition maps; along with driving policy intelligence.

In the long run, Intel will gain benefits of having a bigger range of various pieces that are needed for autonomous driving systems; along with having more relationships with different automakers. Mobileye’s CTO and co-founder, Amnon Shashua has informed that the tech company is working with 27 car manufacturers currently; including 10 production programs with BMW, Audi, and others.

Meanwhile, Intel’s CEO, Brain Krzanich, said that the acquisition is a great step for the automotive industry, their shareholders, and consumers. He said that Intel Corporation provides foundational technologies; that include deciding the car’s path and making the real-time driving decisions. Meanwhile, Mobileye creates the best automotive grade computer vision and has a strong momentum with suppliers and automakers. He further added that these two companies together can boost the future of autonomous driving; and improve performance in the cloud to car solutions, at lesser costs for automakers.

Biggest Acquisition by Intel

Intel has confirmed that its autonomous driving division will be based in Israel; and it will be lead by Mobileye’s co-founder and CTO, Amnon Shashua. Intel’s SVP, Doug Davis will be responsible for overseeing that how both the companies are working together and report to Amnon Shashua.

Working at a higher end in the self-driving market and technology can be considered as Intel’s major strategy. This way it can position itself and increase its goodwill in the emerging areas of autonomous technology and computing. Intel is not the only company that is acquiring and investing in computer vision, and autonomous technology based start-ups. The Santa Clara company knows it has a tough competition, which is why it is buckling up to raise its game.

As a concluding fact, it is interesting to know that this is probably the largest Israeli tech acquisition in history. Intel’s acquisition of Mobileye is almost fifteen times bigger than the acquisition of Waze by Google, for $1.1 billion. Eventually, Intel expects a major opportunity of approximately $70 billion in the data, vehicle systems, and services market; after this acquisition.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
19 hours ago
Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
2 days ago
iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
4 days ago
Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

The French oil major, Total, has signed a $27 billion deal to fund a 1-gigawatt solar power plant, and boost oil and gas production in the Middle-East region.
4 days ago
PMI seals $1.51 billion takeover of British inhalation specialist Vectura

PMI seals $1.51 billion takeover of British inhalation specialist Vectura

Philip Morris International (PMI) acquires a 22.6% stake in British inhalation specialist Vecutra closing in on the controversial $1.51 billion takeover.
5 days ago
Apple co-founder Steve Wozniak joins the space race

Apple co-founder Steve Wozniak joins the space race

Wozniak, popularly known as “Woz”, is setting up a private space company with Ripcord co-founder Alex Fielding. In a tweet, Wozniak shared a promotional video for the company c
6 days ago