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Published: Tue, March 14, 2017
Economy | By Melissa Porter

Largest high-tech deal in history: Intel purchases Mobileye

Largest high-tech deal in history: Intel purchases Mobileye

At the CES 2017 in Las Vegas this January, Intel, Mobileye and BMW Group revealed plans to deploy a fleet of around 40 autonomous test vehicles on the roads by the second half of this year.

Mobileye makes computer vision, machine learning, data analysts, and mapping technology for advanced driver assisted systems and autonomous driving.

According to the agreement, Intel will launch a tender offer to acquire all of Mobileye's issued and outstanding ordinary shares for $63.54 per share in cash, Globes reported.

Today, Mobileye estimates its products to have been installed in approximately 15.7 million vehicles worldwide through December 31, 2016. Mobileye works with 27 automakers and has partnerships with the vast majority of automotive suppliers. Professor Amnon Shashua, who is one of Mobileye's co-founders and now serves as Chairman and CTO of the company, will lead this new division within Intel. Mobileye was also an early partner of Tesla's for its autonomous technology, although that relationship is ending amid some controversial undertones about safety measures at the carmaker.

In addition to the stake acquisition, the two companies also agreed to collaborate on research and development in the areas of highly scalable proof-of-concept architecture for real time updates of high definition (HD) maps for automated driving. The Marker and Axios both claim the deal is valued at around $15 billion, and it will see Intel take over some key technology for its ambitions to lead autonomous cars. The company has secured 70 percent of the global market for driver-assistance and anti-collision systems, reports Reuters.

While Intel is still the world's largest chip maker for personal computers and data centers, the company arguably got beat in the mobile chipset industry, which is now dominated by companies like Apple, Samsung, and Qualcomm. The auto OEM players are spending $45 billion on R&D-although not all of that is on autonomous driving-but it reinforces that there's a lot of money to go into this sector. We are a DATA company.

Mobileye, which started trading on the New York Stock Exchange in August 2014, is a supplier of collision-avoidance vehicle sensor systems. Mobileye is well-rounded in terms of creating self-driving software, while Intel already has an established reputation in making hardware chips.

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