Intel has announced that it will be acquiring Israeli automotive tech firm Mobileye in a deal worth just over US$15.3-billion.
Thhe company produces smart vision technology for cars, being used for collision avoidance and other driver assistance functions.
“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,” Intel wrote in a press statement.
The move signals Intel’s strong intention to position itself within the autonomous/assisted driving space.
Intel’s acquisition of Mobileye will apparently see Intel’s advanced automotive team integrating with Mobileye
“The acquisition will couple the best-in-class technologies from both companies, including Intel’s high-performance computing and connectivity expertise and Mobileye’s leading computer vision expertise to create automated driving solutions from the cloud through the network to the car.”
Intel estimates that the “vehicle systems, data and services market opportunity” will be up to US$70-billion by 2030.
Interestingly enough, Mobileye’s letter to employees states that the company won’t be integrated into Intel. Instead, it’s claimed that Intel’s Advanced Driving Group (ADG) will be integrated into Mobileye.
“Intel’s automotive activity, which is concentrated in the ADG today, has a sizeable number of employees. The Group will form part of Mobileye and be headquartered in Israel.”