Intel Is Forking Over $15.3B For This Israeli High-Tech Company
Intel just made an announcement that the company will be acquiring Israel’s Mobileye for $15.3 billion.
Mobileye represents 70 percent of the global market for advanced driver-assistance and anti-collision systems.
The chip giant has agreed to buy the driverless company in order to gain its driverless technology. This is the largest acquisition yet for an Israeli high-tech company and the world’s biggest purchase of a company based solely on the focus of the autonomous driving sector.
Intel has agreed to pay $63.54 per share in a cash deal, and according to the company, the transaction is expected to close within the next nine months.
Intel said the transaction should immediately boost its non-GAAP earnings per share, as well as its free cash flow.
Founded in 1999, Mobileye has a market value of $10.6 billion and had adjusted net income of $173.3 million in 2016.
Both companies are already working together with automaker BMW on a project to put around 40 self driving test vehicles on the road in the second half of 2017.
Disclaimer: We have no position in Intel Corporation (NASDAQ: INTC) nor Mobileye NV (NYSE: MBLY) and have not been compensated for this article.