Intel Acquiring Mobileye For Autonomous Driving Technology
- Author: Delia Davidson Mar 14, 2017,
Mar 14, 2017, 0:40
Aviram told Prime Minister Netanyahu that the center of the company's operations would remain in Israel, that the company would build a global development center in the country, and that it would be responsible for Intel's worldwide activity regarding autonomous vehicles.
The U.S. company estimates that the vehicle systems, data and services market will be worth up to 70 billion dollars by 2030.
"Mobileye brings the industry's best automotive-grade computer vision", Brian Krzanich, chief executive officer of Intel, said in a statement.
Mobileye had also partnered with Tesla on autonomous technology before the collaboration ended unceremoniously previous year.
It is the biggest technology takeover in Israel's history and the largest purchase of a company exclusively focused on self-driving. Mobileye stock was last trading at $47.16 per share on Friday, which means that Intel has agreed to pay just under 35 percent more per share. Most importantly, a test with 40 self-driving cars, in partnership with BMW, will continue as scheduled, meaning that this technology is only going to get closer. Intel has worked increasingly with Mobileye, announcing plans a year ago to deploy 40 autonomous cars as part of trials with BMW. The company's offerings are already inside several semi-autonomous vehicles, including Tesla cars.
British PM May says preserving union a prime goal
Scottish First Minister Nicola Sturgeon has been demanding substantial new powers are transferred to Holyrood following Brexit. A referendum in 2014 saw Scotland vote to remain in UK.
Intel also spun out its cyber security division, formerly known as McAfee, last year in a deal valuing it at $4.2 billion including debt, about five years after having bought the anitvirus software maker for $7.7 billion. "This is a record deal not only for Yissum and Mobileye, but for Israel".
Intel was driven to buy the company due to it being a market leader in computer visions systems seen as critical for autonomous cars. Mobileye is also working with BMW to develop a combination of input from vision, radar and LiDAR sensors the combine with machine learning algorithms to negotiate complex driving situations.
He called it "a great step forward for our shareholders, the automotive industry and consumers", adding: "Together, we can accelerate the future of autonomous driving".
Mobileye was founded in 1999 with a mission to help cut the number of injuries and fatalities caused by vehicles.
Autonomous cars will need higher levels of connectivity to the Internet and access to bigger data centers, which Intel can provide, Krzanich said.