Intel Completed the Tender Offer for Mobileye
9 August, 2017
Intel’s Automated Driving Group (ADG) will combined with Mobileye, and the new organization will be headquartered in Israel and led by Mobileye's co-founder Prof. Amnon Shashua
[Photo above: Intel CEO Brian Krzanich (left) and Mobileye co-founder Amnon Shashua]
Now it’s official: Mobileye have became an Intel’s company: Yesterday Intel announced the completion of the tender offer for outstanding ordinary shares of Mobileye, following the purchase of approximately 84 percent of the outstanding Mobileye ordinary shares. Intel will buy the rest of the shares and will take Mobileye out of NYSE as far as next month.
This is one of Intel’s biggest deals ever, valued at $15.3 billion. Intel believes that the combination of Intel and Mobileye’s leading vision processing algoriths will create new technologies and market opportunities in Automated Driving, based on Mobileye’s computer vision expertise with Intel’s high-performance computing and connectivity expertise. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030.
New organisation based in Israel
The next step will be re-organisation: Intel’s Automated Driving Group (ADG) will combine its operations with Mobileye, and the combined new organization will lead Intel’s autonomous driving efforts, with the support of Intel resources and technology to define and deliver cloud-to-car solutions for the automotive market segment. Mobileye will remain headquartered in Israel and led by the co-founder Prof. Amnon Shashua who will serve as Intel senior vice president and Mobileye CEO and chief technology officer. The other co-founder and CEO of Mobileye, Ziv Aviram, is retiring from the company, effective immediately.
“With Mobileye, Intel emerges as a leader in creating the technology foundation that the automotive industry needs for an autonomous future,” said Intel CEO Brian Krzanich. “It’s an exciting engineering challenge and a huge growth opportunity for Intel.” Prof. Amnon Shashua provided some outlines of the new cooperation: “Leading in autonomous driving technology requires a combination of innovative proprietary software products and versatile open-system hardware platforms that enable customers and partners to customize solutions.” In other words: Mobileye will develop software solutions to run on Intel’s x86 Architecture.
Intel is not new in Israel. It started its presence in Israel in 1974, and since than grew dramatically to a production facility and research and development centers, with total of approximately 10,000 employees.