Money keeps pouring in from companies trying to perfect the self-driving car. The latest eye-popping transaction: Intel announced Monday that it was buying Israeli company Mobileye for $15.3 billion. Mobileye's systems, which are used by 27 carmakers, depend on specialized cameras to sense a car's surroundings on the road. It's the tech behind the emergency braking and lane assistance systems that are becoming more common in new vehicles. The acquisition shouldn't come as a huge surprise, since the two companies have been working together with BMW since last year to create a fully autonomous car by 2021.
You probably haven't heard of Mobileye, but in the past couple of years it has become one of the most important players in the emerging self-driving car industry. And that means Intel's $15 billion acquisition of the company, announced Monday, makes Intel one of the most important tech companies in the car industry. Intel powered the PC revolution by providing the computer chips that allowed PCs to become ever more powerful. Mobileye has positioned itself to do the same for self-driving cars: Currently, conventional car companies put Mobileye sensors, chips, and software into their vehicles in order to give them advanced driver-assistance capabilities. The company says its hardware is already embedded in more than 300 car models from 27 different car companies, and the company is reportedly working with giants such as GM and Volkswagen.
Less than three years after its blockbuster IPO, Israeli company Mobileye has ridden the wave of self-driving car enthusiasm to a timely acquisition. Intel said on Monday that it would shell out $15.3 billion for Mobileye, which makes assisted driving software, in the biggest acquisition ever of an Israeli technology company. Intel will pay $63.54 per share in cash, which represents a 36% premium over Friday's closing price of $46.88. Shares of Mobileye surged 30% to $61.48 in morning trading, while shares of Intel slid 2%. The deal marks a happy end to Mobileye's short stint on the public markets.
Intel has shifted its self-driving car efforts into high gear with a $15.3 billion deal to acquire computer vision and collision-avoidance company MobileEye. With the deal, announced Monday, Intel gets its hands on technology for machine learning, data analysis, localization and mapping for driver assistance systems and autonomous driving. Mobileye develops a full package of software and chips designed for use in autonomous cars. The deal is expected to close in nine months and calls for the combined global autonomous driving organization, which will consist of Mobileye and Intel's Automated Driving Group, to be headquartered in Israel and led by Amnon Shashua, Mobileye's co-Founder, chairman and CTO. The acquisition of MobileEye will be merged with Intel technologies like Xeon processors, FPGAs (field programmable gate arrays), 3D Xpoint memory and 5G modems in autonomous cars said Brian Krzanich, Intel's CEO.
Silicon Valley giant Intel on Wednesday announced plans for a fleet of self-driving cars following its completion of the purchase of Israeli autonomous technology firm Mobileye. A day after closing the $15 billion deal to buy Mobileye, which specializes in driver-assistance systems, Intel said it will begin rolling out fully autonomous vehicles later this year for testing in Europe, Israel, and the US. The fleet will eventually have more than 100 vehicles, according to Intel. Silicon Valley giant Intel on Wednesday announced plans for a fleet of self-driving cars following its completion of the purchase of Israeli autonomous technology firm Mobileye. Mobileye's software, which reads inputs from cameras, radar, and laser sensors and makes decisions on what an autonomous car should do.