Earlier today we heard a rumor that Intel was buying Mobileye, Intel has now confirmed the acquisition and the deal is worth around $15.3 billion.
Intel will buy Mobileye for $63.54 per share in cash, this gives an enterprise valuation of the deal of $14.7 billion.
Strategic Importance of the Acquisition
The acquisition will couple the best-in-class technologies from both companies, including Intel’s high-performance computing and connectivity expertise and Mobileye’s leading computer vision expertise to create automated driving solutions from the cloud through the network to the car.
The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030. The transaction extends Intel’s strategy to invest in data-intensive market opportunities that build on the company’s strengths in computing and connectivity from the cloud, through the network, to the device.
Impact on the Autonomous Vehicle Market
Mobileye, an Israeli company, is a global leader in the development of computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. By integrating Mobileye’s cutting-edge technology with Intel’s robust computing capabilities, the merged entity aims to create a comprehensive suite of solutions that will drive the future of autonomous vehicles.
This acquisition is not just a financial transaction but a strategic move that underscores Intel’s commitment to the autonomous vehicle market. The synergy between Intel’s hardware and Mobileye’s software is expected to yield innovative solutions that will enhance the safety, efficiency, and reliability of autonomous driving systems. For instance, Mobileye’s EyeQ chips, which are already used in millions of vehicles worldwide, will benefit from Intel’s advanced processing power, enabling more sophisticated and responsive autonomous driving features.
Moreover, the collaboration is likely to spur advancements in data collection and analysis, crucial for the development of autonomous vehicles. With Intel’s expertise in data centers and cloud computing, the combined entity will be well-positioned to handle the massive amounts of data generated by autonomous vehicles, ensuring real-time processing and decision-making.
The acquisition will couple the best-in-class technologies from both companies, including Intel’s high-performance computing and connectivity expertise and Mobileye’s leading computer vision expertise to create automated driving solutions from the cloud through the network to the car.
The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030. The transaction extends Intel’s strategy to invest in data-intensive market opportunities that build on the company’s strengths in computing and connectivity from the cloud, through the network, to the device.
Additionally, this acquisition is expected to have a ripple effect across the automotive industry. Other tech giants and automotive manufacturers are likely to ramp up their investments in autonomous driving technologies to keep pace with the advancements driven by the Intel-Mobileye partnership. This could lead to a surge in collaborations and acquisitions within the industry, further accelerating the development and deployment of autonomous vehicles.
You can find out more information about the deal between Intel and Mobileye over at Intel at the link below.
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