Intel plans to bring the self-driving car unit to the public in the US in 2022
Mobileye CEO Amnon Shashua poses with a Mobileye self-driving vehicle in Nasdaq Market in New York on July 20, 2021.
Jeenah moon | Reuters
Intel announced that it will sell Mobileye, the Israeli autonomous driving company, for $ 15.3 billion in 2017.
The Santa Clara chipmaker announced Monday that it plans to publicize Mobileye in the U.S. through an IPO of newly issued Mobileye shares in mid-2022.
Intel, whose share price fell from $ 68 in April to below $ 50 in December, said the listing will create value for Intel shareholders. It added that it will remain the majority shareholder in Mobileye.
Mobileye was founded in Jerusalem in 1999 by Amnon Shashua and Ziv Aviram and is one of Israel’s greatest technology success stories. The company develops self-driving cars and advanced driver assistance systems for other manufacturers.
Over the years it has partnered with Tesla, BMW, Volvo, and General Motors. Last July, the company signed a contract with Ford to support its next generation of advanced driving and safety features across the automaker’s global product line. Under the agreement, Ford will use Mobileye’s “EyeQ” camera-based detection technology for functions such as forward collision warning and vehicle, pedestrian and cyclist detection.
In a statement, Intel CEO Pat Gelsinger hailed the Mobileye acquisition as a success, adding that Mobileye sales will be 40% higher in 2021 than in 2020.
“Amnon and I have found that going public is the best opportunity to build on Mobileye’s track record in innovation and create value for shareholders,” said Gelsinger, who took over as CEO of Intel in January.
Mobileye’s listing marks a return to public for the company, which was listed on the New York Stock Exchange in 2014 after receiving a $ 130 million investment from Goldman Sachs in 2007.
At the time of the takeover of Mobileye, the deal was considered expensive, especially since Intel had recently reported annual sales of only 400 million US dollars. But self-driving car company valuations have skyrocketed since the Mobileye acquisition. Waymo and Cruise are both valued at over $ 30 billion.
Mobileye was valued at $ 10.6 billion at the time of its acquisition by Intel. It is unclear what rating Intel will aim for next summer for Mobileye.
According to the news, Intel stock rose around 8% in after-market trading on Monday, with the stock climbing from around $ 49 to $ 51.
Overall, Intel’s stock price has struggled this year, while other chip companies, including Taiwan’s TSMC and graphics chip designer Nvidia, have risen sharply.