Intel to buy Mobileye for $15 billion

  • Intel to buy Mobileye for $15 billion

Intel to buy Mobileye for $15 billion

"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".

This is not the first time an Israel based computer vision company is in the news. The company received an investment of $130 million from Goldman Sachs in 2007. Both companies publicly blamed one another for the tragedy. It employs 600 people.

Intel and Mobileye aren't strangers by any means. They've stayed high: As of 12:30 p.m. EDT, shares of the Israeli maker of advanced driver-assist systems were trading at $61.14, up over 29% from Friday's closing price. All current contracts now under Mobileye for automotive OEMs will be retained under this new company.

"Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers", he added.

Mobileye N.V. was founded in 1999 by Hebrew University researcher Amnon Shashua, who grew his academic research into a technical solution for a vision system that detects vehicles using a camera and software algorithms. Intel Senior Vice President Doug Davis will also report to Shashua and oversee the combined organisation's engagement across Intel's business groups. The all-cash acquisition will be funded with "cash on the balance sheet".

Raymond James & Associates advised Moibileye, which received counsel from Morrison & Foerster.

On the buy-side, Citigroup and the 179-year-old firm Rothschild advised Intel and could split between $10 million and $20 million in fees, according to the consultant Freeman & Co.

"The acquisition of Mobileye essentially merges the intelligent eyes of the autonomous auto with the intelligent brain that actually drives the vehicle", said Brian Krzanich, chief executive of Intel.

Today's deal announcement may have been triggered by QualComm's decision last October to acquire NXP for $47 billion. Although it reported better-than-expected fourth-quarter earnings in January, it said revenues this year would be flat.