US Computer Chip tech giant Intel is locked the $15.3 billion deal to buy Israeli technology firm Mobileye. Planing for Expanding the future of Driverless Technology Invention. This is the largest ever acquisition made to buy an Israeli technology company.
Intel informed that the formality of merger will be completed by next nine months. However, the per share price and free cash flow has already boosted.
Intel and Mobileye working on a collaboration project with German automaker BMW to produce around 40 driverless test vehicles to be self-driving on roads by the mid-year 2017.
Intel also developing the fifth generation of chips that will be capable of fully instructed for self-driving module. The first lot will be delivered by 2021.
Mobileye, founded in 1999 with an objective to reduce vehicle injuries and on road fatalities. They’ve received an investment in 2007 from Goldman Sachs for $130 million dollars which helped them further to be listed on New York Stock Exchange.
Last year Qualcomm’s announced a $47 billion deal with NXP the biggest automotive chip maker, that put pressure on the rival including Intel, Mobileye, and NVIDIA. Intel doesn’t want to lose this big opportunity in the automobile sector, hence invested in the acquisition of Mobile as soon as possible.
Mobileye’s net income was $173.3 million dollars in 2016 and it employs around 600 people across all locations.
