Intel to acquire self-driving firm Mobileye for $15 billion
Intel announced Monday it will acquire Mobileye in a deal worth about $15 billion, as the tech giant makes a deeper push into the growing self-driving vehicle market.
In a statement, Intel says it plans to acquire Mobileye for $63.54 per share in cash. The equity value of the deal is $15.3 billion, while the enterprise value of the acquisition is $14.7 billion.
“Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers,” Intel CEO Brian Krzanich said in a statement. “Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”
Shares of Mobileye were up 31% in pre-market trading Monday. Intel shares were down 1.6%.
Mobileye was founded in 1999, specializing in creating chips and software for autonomous vehicles, such as data analysis and mapping for self-driving systems. In an email to employees, Mobileye president and CEO Ziv Aviram and fellow co-founder Amnon Shashua said they will continue to run the company as they have previously.
“An interesting journey is ahead,” reads their email. “We always wanted to change the world – now we have better means of doing so.”
Intel says the deal will help accelerate innovation in the self-driving vehicle market, forecast to reach $70 billion by 2030. However, Intel is part of a crowded field of tech companies and automakers seeking to get their autonomous vehicles and self-driving systems on the road.
Last month, Ford announced it would invest $1 billion over five years into startup Argo AI, with a plan to deliver their first autonomous car by 2021. Meanwhile, Google and Uber have struck deals with Fiat and Volvo, respectively, to create self-driving vehicles.