Published: Tue, March 14, 2017
Money | By Oscar Reynolds

Intel Acquires Israel Based Computer Vision Firm Mobileye For $15.3 Billion

Intel Acquires Israel Based Computer Vision Firm Mobileye For $15.3 Billion

"Mobileye brings the industry's best automotive-grade computer vision", Brian Krzanich, chief executive officer of Intel, said in a statement.

Mobileye's co-founder Amnon Shashua said that "strong momentum" Krzanich referred to involves working relationships with 27 manufacturers, including 10 production projects with Audi, BMW and other major automakers.

Mobileye is a company that develops vision-based advanced driver assistance systems and driverless technology. Goldman Sachs and Morgan Stanley took the company public in 2014. Employing around 600 people, the company had adjusted net income of $173.3 million in 2016.

The two companies made the announcement early Monday, after Israeli business news publication, The Marker first broke the news. After netting out Mobileye's cash, the deal value comes to $14.7 billion. With Intel's acquisition, Mobileye is expected to make a switch to Intel chips by 2020.

The deal price is a 34 percent premium to where Mobileye's shares were trading at the close on Friday.

The company has also had its share of controversy, and Mobileye dissolved its partnership with Tesla in 2016, following a fatal crash involving self-driving technology used in Tesla's vehicle called Autopilot.

The combined organization will be headquartered in Israel and led by Shashua.

Intel is reportedly acquiring Mobileye, a company that specializes in chips for vision-based autonomous vehicles.

"The ADG team includes systems engineers, simulators, mapping ingestion infrastructure and cloud computing with data centers, vehicle build engineers, and access to a pool of software engineers that will become part of our team".

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

Intel retained Citi and Rothschild. In August, the two companies, along with BMW, signed an agreement to develop technology for autonomous vehicles and self-driving cars. Last October, Qualcomm announced a $47 billion deal to acquire automotive chip supplier NXP. Caruso previous year formed a Strategic Development and Innovations division focused on new technologies such as driverless cars, beacons and sensors with the company's Palisades Village project expected to be an incubator of new technology.

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