Intel will pay $ 15.3 billion for a robo mobile hardware company
Intel announced a deal to buy an Israeli company Mobileye, which develops cameras for unmanned vehicles, according to a promotional website dedicated to the deal. The Israeli manufacturer posted a message about buying it on the main page of its site . It is expected that the transaction will be closed before the end of the year - within the next nine months.
Mobileye is an Israeli hardware developer. The company is engaged in the production of sensors, navigators, front and rear parking cameras and other devices. Now Mobileye securities are trading at $ 63.54 per share. The total value of its securities is $ 15.3 billion.
The purchase of Mobileye by Intel is a complete step towards entry into the automotive industry for the technology giant. In addition to patents and manufacturing, Intel also receives Mobileye contracts with many car manufacturers. According to the information on the official website of the Israeli company, it cooperates with 13 different manufacturers only in the field of creating automated transport. A total of Mobileye customers are 27 auto manufacturers (including Audi and BMW automakers).
If the deal goes through, Mobileye will set the second record in three years, becoming the most expensive Israeli company ever bought. Earlier, in 2014, the manufacturer’s IPO was the most successful in the history of Israeli business. Of the other deals of a similar scale, you can only remember the purchase of a Waze startup by Google for $ 1.1 billion and the much more modest acquisition of Apple by the PrimeSense startup for $ 300 million.
Intel actions are not spontaneous. Since last year, the technology giant has begun cooperation with Mobileye. Now, Intel has matured to the full purchase of the manufacturer. At the same time, the deal is not already the classic “takeover and gutting” of the patent portfolio: CTO and co-founder of Mobileye, Professor Amnon Shashua, will lead Intel's Robil mobile division in Israel. In charge of the joint work of Intel and Mobileye in this direction will be personally senior vice president of Intel Doug Davis.
Against the backdrop of a shrinking market for desktops and laptops and an increase in the share of mobile devices, Intel is taking active steps to master new areas. Now the company is actively investing in the most promising areas. Thus, the technology giant, along with Nvidia, is actively involved in the development of technologies of augmented and virtual realities, and now has become interested in roaming vehicles.
Intel and Mobileye tandem have at least a few competitors. This is Uber with its project Otto, carrier Lyft, car concern Volvo, Google and, of course, Tesla Motors.