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Intel to buy Israeli driverless car-tech firm Mobileye for $15b

By Reuters - Mar 13,2017 - Last updated at Mar 13,2017

The logo of Intel, the world's largest chipmaker, is seen at their offices in occupied Jerusalem, April 20, 2016 (Reuters file photo)

OCCUPIED JERUSALEM — US chipmaker Intel agreed to buy Israeli driverless car-technology firm Mobileye for $15.3 billion on Monday, positioning itself for a dominant role in the fast-moving autonomous-driving sector.

The $63.54-per-share cash deal marks the largest purchase of a company solely focused on the self-driving sector and could significantly alter the competitive landscape among key technology and systems suppliers, including chipmakers Nvidia Corp and Qualcomm Inc. and systems integrator Delphi Automotive Plc.

Mobileye's shares jumped 30 per cent to $61.3 in late morning US trading, while Intel's shares were down 2 per cent. Shares of Delphi, which has partnerships with both companies, were up 3 per cent.

The deal underscores the expanding alliances between automakers and their suppliers as they race to develop self-driving cars, a concept that once seemed a science-fiction dream but is drawing closer to reality.

While Intel is known for hardware chips and Mobileye for collision detection and mapping software, the merger promises to create an expanded portfolio of technologies needed for driverless vehicles. It also strengthens Intel's position in the sector against rival chipmakers Nvidia and Qualcomm.

The Intel-Mobileye portfolio includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.

"It's an area where [Intel] has had very little presence — the automotive market, and so this is a tremendous opportunity for them to get into a market that has significant growth opportunities," said Betsy Van Hees, an analyst at Loop Capital Markets.

"Mobileye's technology is very critical... The price seems fair," she added.

 

The offer represents a premium of about 33 per cent to Mobileye's closing price of $47 on Friday.

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Comments

I agree. It's important to keep Israeli ingenuity Israeli to maintain and foster a reputation of quality of the Israeli brand. Selling our ingenuity will make the Israeli brand look shorewashed and in it just for profit hoarding, kinda like how Ford was before the makeover. Plus, consumers will think the Israeli market is just shop-set and go, and nobody will invest in our companies who have dynastic goals.

NO ONE CAN TELL ME THAT JORDANIAN KIDS CAN DEVELOPE A BETTER TECHNOLOGY THAN THIS ONLY AND ONLY IF THEY ARE ENCOURAGED TO DO SO. CASE STUDIES, ALL THE FRIENDS AND CLASSMATES OF MY SON IN HIGH SCHOOL AT AMMAN NATIONAL SCHOOL MAJORED IN ENGINEERING FROM ENGLAND, USA AND CANADA AND ALL THESE SCHOOLS ARE THE FIRST CLASS UNIVERSITIES IN THIS CENTURY. MY SON WITH BS & MS IN COMPUTER ENGINEERING AND NOW AT YALE, ONE OF HIS CLASSMATE IN ELECTRICAL AND OTHERS IN CIVIL CAN REMAKE JORDAN ADVANCEMENT IN SCIENCE AND TECHNOLOGY BUT EITHER WASTA AND / OR BUSINESS AS USUAL HAS CREATED NO ROOM FOR THIS AS BUSINESS AS USUAL CONTINUES. MAKE HEY WHILE THE SUN SHINES.

Don't sell our ingenuity to foreign firms you spineless group of slithering pondworms! Keep Israeli ingenuity Israeli!

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