First they partnered, and now comes the acquisition: the computing giant Intel has confirmed that it is acquiring Mobileye, a leader in autonomous driving..
First they partnered, and now comes the acquisition: the computing giant Intel has confirmed that it is acquiring Mobileye , a leader in autonomous driving technology, for $15.3 billion — the biggest-ever acquisition of an Israeli tech company.
Specifically, “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 $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion,” the company noted in a statement.
“The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles,” the company continued. “Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030. The transaction extends Intel’s strategy to invest in data-intensive market opportunities that build on the company’s strengths in computing and connectivity from the cloud, through the network, to the device.”
Still under discussion are what roles different executives will take post-acquisition: one concerns Mobileye’s CTO, who is being tipped to head up Intel’s automotive division, said David Bedussa , a senior business analyst focusing on automotive at CMC Labs in Israel.
“Nothing will be moved to the U. S. [and] Intel may open another R&D center in the country focused on automotive,” he said.
