openPR Logo
Press release

Intel's $15 billion purchase of Mobileye shakes up driverless car sector

03-14-2017 09:45 AM CET | Science & Education

Press release from: Yissum

Intel's $15 billion purchase of Mobileye shakes up driverless

Mobileye's technologies were originated at the Hebrew University of Jerusalem and Licensed to Mobileye by Yissum, the Technology Transfer arm of the University. Tamir Huberman is VP Business Development at Yissum which is reponsible for all the Computer Science Researchers at the University including Prof Amnon Shashua.

By Tova Cohen, Ari Rabinovitch and Paul Lienert | JERUSALEM/DETROIT

Intel Corp (INTC.O) agreed to buy Israeli autonomous vehicle technology firm Mobileye (MBLY.N) for $15.3 billion on Monday in a deal that could thrust the U.S. chipmaker into direct competition with rivals Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O) to develop driverless systems for global automakers.

The pricey acquisition of Mobileye could propel the world's largest computer chipmaker into the front ranks of automotive suppliers at a time when Intel has been reaching for market beyond its core computer semiconductor business.

It also promises to escalate the arms race among the world's carmakers and suppliers to acquire autonomous vehicle technology, and could fuel already-overheated valuations of self-driving start-ups.

The stakes are enormous. Last year, Goldman Sachs projected the market for advanced driver assistance systems and autonomous vehicles would grow from about $3 billion in 2015 to $96 billion in 2025 and $290 billion in 2035.

Skeptics have questioned whether auto companies and suppliers will be able to deploy fully self-driving cars safely in the next four years, as several have promised. Investment analysts on Monday raised concerns about the potential synergies between Intel and Mobileye, as well as the acquisition's price.

Intel has not been a significant player in the sector, although it has invested in at least half a dozen start-up companies developing different components for self-driving systems, from robotics to sensors.

Mobileye brings a broad portfolio that includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.

"This is a tremendous opportunity for them to get into a market that has significant growth opportunities," said Betsy Van Hees, an analyst at Loop Capital Markets. "Mobileye's technology is very critical... The price seems fair," she added.

Still, the industry newsletter Semiconductor Advisors on Monday wrote that Intel's acquisition of Mobileye indicates a strategic move "very far outside its core business franchise."

The price is about 21 times expected 2017 revenue, making it more than six times more expensive than the semiconductor industry's three-year deal average, said B. Riley analyst Craig Ellis. He said the "very expensive transaction" improved Intel's position in the automated driver assistance market, but left Nvidia the leader on the highest end.

Intel is paying a premium of 60 times Mobileye's earnings, about four times the premium that Qualcomm is paying to acquire the Netherlands' NXP.

The $63.54-per-share cash deal represents a premium of about 33 percent to Mobileye's closing price of $47 on Friday, but below its all-time high closing price of $64.14 in August 2015.

Mobileye's shares rose 28.2 percent to close at $60.62, while Intel's shares were down 2.1 percent.

The market for self-driving technology is becoming crowded, including mapping company Here, as well as technology companies ranging from Alphabet Inc's Waymo (GOOGL.O) to Chinese Internet giant Baidu Inc (BIDU.O).

Shares of systems integrator Delphi Automotive PLC (DLPH.N), which has partnerships with Intel and Mobileye, rose 4.0 percent. Delphi said in a statement that it expected the deal would let it accelerate adoption of new technologies.

MERGING 'EYES' AND 'BRAIN'

Intel has a mixed record of capitalizing on technology outside computer chips. Last year it spun out its cyber security division, formerly known as McAfee, in a deal valuing it at $4.2 billion including debt, five years after having bought McAfee for $7.7 billion.

Intel will give Mobileye unusual autonomy, integrating its own automated driving group with Mobileye's operations under Mobileye Chairman Amnon Shashua, who will lead the unit from Israel.

Intel Chief Executive Brian Krzanich said the acquisition was akin to merging the "eyes of the autonomous car with the intelligent brain that actually drives the car."

Mobileye supplies integrated cameras, chips and software for driver-assist systems - the building blocks for self-driving cars - to more than two dozen vehicle manufacturers.

In an interview in January, Shashua told Reuters: "If you want to build a truly autonomous car, this is a task for more than one player... The idea is to have a number of partners to share resources and data."

Mobileye was an early supplier of vision systems to Tesla, but the two companies had an acrimonious and public break-up last summer after the driver of a Tesla Model S was killed while operating the vehicle using Tesla's Autopilot system.

Mobileye, founded in 1999, accounts for 70 percent of the global market for driver-assistance and anti-collision systems. It employs 660 people and had adjusted net income of $173.3 million last year.

Shashua and two other senior Mobileye executives stand to do well by the deal: together they own nearly 7 percent of the company. Shmuel Harlap, Israel's biggest car importer and one of Mobileye's earliest investors, also holds a 7 percent stake.

BATTLE FOR SELF-CONTROL

Mobileye and Intel are already collaborating with German automaker BMW (BMWG.DE) on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.

At the same time, Mobileye has teamed up with Intel for its fifth-generation of chips that will be used in fully autonomous vehicles that are scheduled for delivery around 2021. Mobileye also has partnered with Delphi on a self-driving platform that is being shopped to smaller car companies that may not have the resources to develop their own systems.

Last October, Qualcomm announced a $47 billion deal to acquire NXP, the largest automotive chip supplier, putting pressure on other chipmakers seeking to make inroads in the market, including Intel, Mobileye and Nvidia.

The Qualcomm-NXP deal, which will create the industry's largest portfolio of sensors, networking and other elements vital to autonomous driving, is expected to close later in 2017.

(Additional reporting by Edward Taylor, Eric Auchard, Supantha Mukherjee and Narottam Medhora)

About Yissum

Yissum Research Development Company of the Hebrew University of Jerusalem Ltd. was founded in 1964 to protect and commercialize the Hebrew University's intellectual property. Products based on Hebrew University technologies that have been commercialized by Yissum currently generate $2 Billion in annual sales. Ranked among the top technology transfer companies in the world, Yissum has registered over 9,325 patents covering 2,600 inventions; has licensed out 880 technologies and has spun out 110 companies including Mobileye, Briefcam, Orcam, Avraham Pharmaceuticals, Betalin Therapeutics, CollPlant and Qlight Nanotech. Yissum's business partners span the globe and include companies such as Microsoft, Intel, Johnson & Johnson, Novartis, Roche, Merck, Teva, Syngenta, Monsanto and many more. For further information please visit www.yissum.co.il.

Givat Ram

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Intel's $15 billion purchase of Mobileye shakes up driverless car sector here

News-ID: 466347 • Views: 499

More Releases from Yissum

Home Instruction for Parents and Preschool Youngsters (HIPPY) Program to be Laun …
JERUSALEM, March 8, 2017 Tamir Huberman is VP Business Development at Yissum responsible for licensing this program. Yissum Research Development Company of the Hebrew University of Jerusalem, the technology-transfer company of the Hebrew University, announced today that it has signed an agreement with Lolo Educational Services Co. (LES), Korea for the entrance of it its wholly-owned Home Instruction for Parents and Preschool Youngsters (HIPPY) program into Korea. HIPPY is an early learning program
RenewSense Enters Brainnovation, Israel's Brain Technologies Accelerator
Yissum Research Development Company Ltd., the technology transfer arm of the Hebrew University of Jerusalem, today announced that RenewSense was selected to enter Brainnovation, Israel's Brain Technologies accelerator. "A truly remarkable technology that could change the quality of life for so many blind people in the world" says Tamir Huberman. RenewSenses, based on research from the lab of Professor Amir Amedi, from the Department of Medical Neurobiology at the Hebrew University of
Yissum Licenses Technology for Enhanced Digital Image Processing to Lightricks
JERUSALEM, June 14, 2016 /PRNewswire/ -- Yissum Research Development Company Ltd., the technology transfer arm of the Hebrew University of Jerusalem, today announced that it has signed a non-exclusive worldwide licensing agreement and a consulting agreement with Lightricks for the development and commercialization of an imaging technology that improves digital image processing. The technology, invented by Prof. Raanan Fattal from the School of Computer Science and Engineering at the Hebrew
Practical and Secure Searchable Encryption For Cloud Storage
The current technology is a state of the art encryption solution for one of the fastest growing technological areas in the field of IT. "Implementation of the below innovation could revolutionize the way we consume information in a fast but also secure way" says Tamir Huberman, VP Business Development at Yissum which is responsible for licensing the technology. Highlights: ► Outsourcing data storage to remote servers offers invaluable benefits while introducing

All 5 Releases


More Releases for Mobileye

Top Scenario: ADAS Supplier Ecosystem Market By Key Players: Gentex, Mobileye, V …
Qyresearchreports include new market research report ADAS Supplier Ecosystem to its huge collection of research reports. A wide variety of advanced driver assistance systems (ADAS) is currently available from an equally diverse range of OEMs. The development and deployment of these systems is the result of collective action by Tier 1s, semiconductor vendors, software suppliers, sensor manufacturers, and in-vehicle networking suppliers. As OEMs have striven to deliver new, more complex systems
Feb 16, 2018: Automatic or Autonomous Emergency Braking Market Share 2025 Autoli …
Automatic or Autonomous Emergency Braking Market Research 2018 A market study "Global Automatic or Autonomous Emergency Braking Market" examines the performance of the Automatic or Autonomous Emergency Braking market 2018. It encloses an in-depth Research of the Automatic or Autonomous Emergency Braking market state and the competitive landscape globally. This report analyzes the potential of Automatic or Autonomous Emergency Braking market in the present and the future prospects from various angles
Advanced Driving Assistance System Market Research 2017-2021: Delphi Automotive …
Advanced Driving Assistance System Market Research 2017 A market study ” Global Advanced Driving Assistance System Market ” examines the performance of the Advanced Driving Assistance System market 2017. It encloses an in-depth Research of the Advanced Driving Assistance System market state and the competitive landscape globally. This report analyzes the potential of Advanced Driving Assistance System market in the present and the future prospects from various angles in detail. The
In-Vehicle Sensor Devices Market Outlook 2017-2022 Bosch, Continental, Mobileye, …
In-Vehicle Sensor Devices Market Research Report A market study ” Global In-Vehicle Sensor Devices Market ” examines the performance of the In-Vehicle Sensor Devices market Size 2017. It encloses an in-depth Research of the In-Vehicle Sensor Devices market state and the competitive landscape globally. This report analyzes the potential of In-Vehicle Sensor Devices market in the present and the future prospects from various angles in detail. Request For Sample Report: http://bit.ly/2inB4F5 The
Global Commercial Vehicle Pedestrian Protection Systems (PPS) Market 2017: Daiml …
Commercial Vehicle Pedestrian Protection Systems (PPS) Market Report Overview QY Market Research published Top Manufacturers Analysis Of Commercial Vehicle Pedestrian Protection Systems (PPS) Research Report. A market study based on the " Commercial Vehicle Pedestrian Protection Systems (PPS) Market " across the globe, recently added to the repository of Market Research, is titled ‘Global Commercial Vehicle Pedestrian Protection Systems (PPS) Market 2017’. The research report analyses the historical as well as
Electronic Map Market 2017 TomTom, Google, Alibaba?AutoNavi??, Navinfo, mobileye …
Global Electronic Map Market Size, Status and Forecast 2022 provides Market information about Manufacturers, Countries, Type and Application.This Electronic Map Industry report also states Company Profile, sales, Electronic Map Market revenue and price, market share, market growth and gross margin by regions.The following summary will give an overview of the causes, processes, and possible effects of the market research proposal. Request for sample copy of report @ https://goo.gl/vqwqyb Top Manufacturers/Key Players:- TomTom Google Alibaba?AutoNavi?? Navinfo mobileye Sandborn … Market segment