Intel’s acquisition of outstanding ordinary shares of Mobileye NV is now complete, which should soon make some of the goals of the acquisition more clear. That means Intel is spending roughly $15.3 billion to acquire around 84% of Mobileye’s ordinary shares. With that in mind, the newest press release (revealing the completion of the tender offer) states that Intel estimates the “vehicle systems, data, and services market opportunity to be up to $70 billion by 2030.”
“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,” commented Professor Amnon Shashua. “For the first time, the auto industry has a single partner with deep expertise and a cultural legacy in both areas. Mobileye is very excited to begin this new chapter.”
The press release provides more: “Intel’s Automated Driving Group (ADG) will combine its operations with Mobileye, an Intel Company. The combined Mobileye organization will lead Intel’s autonomous driving efforts, and will have the full 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 Professor Amnon Shashua who will serve as Intel senior vice president and Mobileye CEO and chief technology officer. In addition, Ziv Aviram, Mobileye co-founder, president and CEO, is retiring from the company, effective immediately.”
That last bit is interesting. It makes one wonder if there were some internal disagreements at Mobileye about the Intel acquisition, or if Aviram just felt that it was time to do something else. No doubt the company’s future will now be quite different than it would have been otherwise, as a result of the Intel acquisition.