Intel to buy Mobileye for
$14-$15 billion, Israeli media say
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[March 13, 2017]
By Tova Cohen and Ari Rabinovitch
JERUSALEM
(Reuters) - U.S. chip giant Intel has agreed to buy Israeli
driverless technology firm Mobileye for $14-$15 billion, Israeli media
reported on Monday, in what would be the largest ever acquisition of
Israeli high-tech company.
The companies will announce the deal, which would be the world's biggest
purchase of a company solely focused on the autonomous driving sector,
later in the day, several news outlets reported, without citing sources.
Neither Intel nor Mobileye, which accounts for 70 percent of the global
market for advanced driver-assistance and anti-collision systems, were
immediately reachable for comment.
Mobileye's stock surged 33 percent to $62.90 a share in premarket U.S.
trading on the reports.
One banking source said it seemed an announcement would be made on
Monday, calling it "a very significant strategic deal", but did not
offer a valuation.
The two companies are already collaborating with German automaker BMW <BMWG.DE>
on a project to put a fleet of around 40 self-driving test vehicles on
the road in the second half of this year.
![](http://archives.lincolndailynews.com/2017/Mar/13/images/ads/current/christian_village_sda_031616.png)
For a decade, Mobileye has relied on Franco-Italian chipmaker
STMicroelectronics to produce chips which the Israeli company sells to
many of the world’s top automakers for its current, third-generation of
driver-assistance systems.
However, while it was working with BMW, Mobileye also teamed up with
Intel for its fifth-generation of chips that aim to be used in fully
autonomous vehicles and are scheduled to be delivered around 2021.
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![](../images/031317pics/busine25.jpg)
Chairman of Israeli driving assistant software maker Mobileye NV,
Amnon Shashua, poses for a photograph at his office in Jerusalem
September 14, 2016. REUTERS/Ronen Zvulun/File Photo
![](http://archives.lincolndailynews.com/2017/Mar/13/images/ads/current/christian_church_lda_EDUCATION_2017.png)
Founded in 1999, Mobileye made its mission to reduce vehicle injuries and
fatalities. After receiving an investment of $130 million from Goldman Sachs in
2007, it listed on the New York Stock Exchange in 2014. It has a market value of
$10.6 billion.
Last
October, Qualcomm announced a $47 billion deal to acquire NXP, the largest
automotive chip supplier, putting pressure on other chipmakers seeking to make
inroads into the market for autonomous driving components, including Intel,
Mobileye and rival NVIDIA <NVDIA.O>.
The Qualcomm-NXP deal, which will create the industry's largest portfolio of
sensors, networking and other elements vital to autonomous driving, is expected
to close later in 2017, subject to regulatory and shareholder approvals.
Mobileye, which employs around 600 people, had adjusted net income of $173.3
million in 2016.
(Additional reporting by Edward Taylor and Eric Auchard,; Editing by Luke Baker
and Mark Potter)
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