Intel Co. has acquired a high-tech Israeli company called Mobileye for as much as $15.3 billion, in a purchase that had being rumored for a few months but was officially announced this Monday. Mobileye is a tech company specialized in the development of driverless vehicles, and this could mean a considerable expansion for Intel.

Intel issued an official statement Monday that explained all the purchase’s specifications. In the declaration, it is described how an Intel subsidiary will start a series of offers to acquire all of Mobileye’s shares (valued at $63.54 in cash) which combined add up to $15.3 billion. Intel also said that they hope to sign the official purchase within the next nine months.

Intel CEO Brian Krzanich (from left), Chairman of the Board of Management of BMW AG Harald Krüger and Mobileye Co-Founder, Chairman and CTO Professor Amnon Shashua. Image credit: Mobileye.

The Israeli company is currently developing and executing several projects that involve sensor fusion, mapping and front and rear facing camera tech. They also are starting a project that wants to crowdsource data capable of generating high-definition maps, while working on their known driving intelligent service. 

This new acquisition does not only opens the range of action that Intel will have in the future regarding driverless vehicles and intelligent driving mechanisms but it also will allow the tech company to start linking itself with automakers around the country and the world.

Mobileye has worked with over 27 different automakers since the foundation of the company back in 1999. Currently, the Israeli company is developing ten conduction programs with prominent auto companies like BMW and Audi, and they are intended to continue in the next years. Other companies hope to join the before-mentioned programs.

What this acquisition means for each company

According to Brian Krzanich, Intel CEO, the purchase of Mobileye is a step forward for the company, the shareholders, the automotive industry, and consumers.

Meanwhile, Mobileye CEO, founder, and actual president, Ziv Aviram, said that they hope a growth given the innovation that means to the field the inclusion of autonomous driving. He stated, also in an official statement, that this innovation will represent an easier and flexible alternative for people, also offering the public “less costly transportation options and incremental business model opportunities for our automaker customers.”

“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,” Krzanich said in a public statement this Monday.

Aviram explained that when combining both companies’ resources, they would develop amazing projects regarding virtual driving, simulators, hardware and other aspects. They, Krzanich say, “can provide an attractive value proposition for the automotive industry.”

Intel and Mobileye have been working since about a year ago, as they have worked together in programs related to autonomous driving. In fact, they conducted a series of tests with 40 BMW cars concerning self-driving mechanisms using technologies from both companies last year.

Source: Techcrunch