Here is a business acquisition deal that costs billions of dollars. U.S. chip company Intel is about to acquire Israeli automotive supplier/ driverless technology firm Mobileye for $14.7 billion, which equals to $63.54 per share. This is the largest acquisition of an Israeli high-tech company to this date.
More about Mobileye
From the company’s website:
Mobileye was launched in 1999 with the belief that vision-safety technology will make our roads safer, reduce traffic congestion and save lives. With a cutting edge team of more than 450 engineers, Mobileye has developed a range of software products that is deployed on a proprietary family of computer chips named EyeQ®.
In addition, Mobileye is a leading supplier of software for Advanced Assist Systems known as ADAS.
The acquisition has been already approved by the boards of both Intel and Mobileye, and should be closed in 9 months. Mobileye’s self-driving car system technologies are expected to help Intel grow in the emerging self-driving car business.
The two companies have initiated a collaborative project with BMW 40 self-driving test vehicles to be on the road in the second half of 2017.
Mobileye has been working together with chipmaker STMicroelectronics for 10 years to produce chips which the company sells to top automakers for its third-generation driver-assistance systems. While the Israeli company was working with BMW it started collaboration with Intel for its fifth-generation of chips to be used in fully autonomous vehicles. The vehicles should be available around 2021, CNBC reported.
Mobileye Acquisition Not Only about Autonomous Cars, but Also Massive Amounts of Data
This deal is possible one of the most significant events in autonomous technology, as Mobileye works with 27 automakers and sustains plenty of partnerships with such suppliers. On the other hand, Intel will take care of the computing component of the system. But the acquisition is not only about the future of self-driving technology as it also involves having control over large amounts of data. As explained by Intel CEO Brian Krzanich:
Our strategy is to make Intel the driving force of the data revolution across every technology and every industry. We are a DATA company. The businesses we focus on, and deliver solutions to, create, use and analyze massive amounts of data.