Intel to acquire autonomous car tech firm Mobileye
Intel has signed a deal to buy Israeli autonomous car technology specialist Mobileye for around $15.3bn.
The agreement will see a subsidiary of Intel acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash.
US chipmaker Intel said the deal would position it as a leading technology provider in the market, which is expected to be worth up to $70bn by 2030. To date, over 15 million cars have Mobileye technology installed and its products are in use for implementation in 313 car models from 27 OEM partners.
The combined global autonomous driving organisation will be headquartered in Israel and led by Prof Amnon Shashua, Mobileye’s CTO.
According to Intel, by 2020, autonomous vehicles will generate 4,000 GB of data per day.
“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,” said Ziv Aviram, Mobileye CEO. “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 centres and high-performance computing platforms. Together, we will provide an attractive value proposition for the automotive industry.”
The transaction is expected to close within the next nine months. It has been approved by the Intel and Mobileye Boards of Directors and is subject to the receipt of certain regulatory approvals and other closing conditions.