Monday, March 13th 2017
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Intel Dips Its Toes on the Automotive Industry - To Acquire Mobileye
Intel and Mobileye announced on March 13 that they have entered into a definitive agreement pursuant to which Intel will acquire Mobileye. Under the terms of the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion.
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.Intel pegs the combination as "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."This acquisition is a great step forward for our shareholders, the automotive industry and consumers," said Brian Krzanich, Intel CEO. "Intel provides critical foundational technologies for autonomous driving including plotting the car's path and making real-time driving decisions. Mobileye brings the industry's best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers."Intel is funding the acquisition with cash straight form its balance sheet, with the transaction being expected to close within 9 months.
Source:
Intel and Mobileye
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.Intel pegs the combination as "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."This acquisition is a great step forward for our shareholders, the automotive industry and consumers," said Brian Krzanich, Intel CEO. "Intel provides critical foundational technologies for autonomous driving including plotting the car's path and making real-time driving decisions. Mobileye brings the industry's best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers."Intel is funding the acquisition with cash straight form its balance sheet, with the transaction being expected to close within 9 months.
17 Comments on Intel Dips Its Toes on the Automotive Industry - To Acquire Mobileye
will Intel Play nice with Nvidia in this expansion who are allready in this Vroom Vroom world
But after all hw is that which sells, and right now nvidia's tegra based hw and sw combo is more capable than atom based intel offerings.
what matters is Intel Backed up by its obscenely Fat Cheque Book/line of Credit Can if it chose's to bring unbelievable Pressure to bare on the Automotive Industry in regards to Nvidia's offering.
You want a comparison
Intels Core Buisness is CPU's
AMD Started to Challenge >> Intel Back in the Day
Intels response
Checque Book and Credit lines to Partners to promote the use of Intel Cpu's
They Crushed AMD Almost to the point where AMD almost Collapsed
If it was not AMD's Forrage into Buying ATi and the Support that acquisition provided eventualy to AMD's fiances
AMD might have Failed and gone out of Business
The amount of people who design such things ain't that much... unless they clone some army like like Jim Keller that also helped to create Cyclone, Zen and all DEC past... There is simply deficit of them.
Car people are also hideous bunch, with a lot of power that equals Intel. The main thing will be the AI software not the HW that will dominate actually... the platform will come afterwards...
Problem with Phones and intel was and still is ARM is so Well entrenched and Intel gave up ( chips still to power hungry for phones)
However with those gas guzzling Tin and Carbon fibre boxes power requirments don't matter like they do in Phones
they have Massive Batterys
To Late you do realise that the IOT is just hitting the automotive Industry
Nvidia may be there with the Tegra presence ALLREADY
Intel Sense a Vast Market waiting hence Intels latest Acquisition
That is as good as any Sign that Intel want A massive STAKE IN THIS DEVELOPING MARKET and are prepared to INVEST
You seem to be un-aware that UBER dont make Cars neither do Google and Tesla have what 0.000000001% or less of Global production
Uber are not a shark they are bottom feeding Slug with global legal problems with their corporate screw your local laws we will do what we want to rip you off" Business" model
Google will just hire/lease and not make their own car's ( they might Partner as a silent Snooping Sleeping partner)
Tesla will go bust or get bought out
That just leaves the Established Automotive Industry
Ai is useless with out the hardware
even google and Uber know this they fit their AI to the Wheels (the Established Automotive Industry)
I read somewhere Toshiba got into financial trouble, maybe Intel can help them with some cash by acquiring their storage division