Intel picks up Mobileye for £12.5bn in self-driving auto push

Intel is snapping up self-driving vehicle firm Mobileye in a deal worth $15.3 billion.

Today, Mobileye estimates its products to have been installed in approximately 15.7 million vehicles worldwide through December 31, 2016.

"The addition of Mobileye to our family provides the data path to our computing solutions becoming the intelligent set of eyes that will allow a vehicle to see and define the world around it", said Brian Krzanich, Intel's chief executive, in a letter to employees.

Following a partnership to work alongside BMW on a new reference platform for autonomous cars, Intel has announced it is acquiring machine-vision technology company Mobileye for $15.3 billion. "Our long history together is key to the success of this ambitious endeavor", Professor Amnon Shashua, Mobileye Co-Founder, Chairman and CTO, said upon announcing the partnership past year. It also was the firm that developed Tesla's first-generation Autopilot system.

The two companies have previously partnered with BMW, announcing a deal in July a year ago with the aim of fully automated driving in series production by 2021. "We believe these capabilities which started with hands-free highway driving will gradually extend to other types of roadways, such as country and city driving". We are a DATA company.

The acquisition, which is already approved by the boards of both companies, is expected to close within nine months. Intel, which missed the transition to mobile, gains what could become a significant supplier to the emerging self-driving auto business. Mobileye, an Israel-based maker of systems for autonomous driving vehicles, came public in August 2014 in an initial public offering (IPO) at $25 a share, and the stock reached an all-time high of more than $60 a share in July of 2015.

The two companies are working with BMW to put around 40 self-driving test vehicles on the road in the second half of this year, the report added.

Intel is known for hardware chips and Mobileye for collision detection software.

The fact that Mobileye was purchased by Intel, rather than an OEM or Tier 1 supplier, should be a good thing, according to Ben Volkow, CEO of Otonomo (another Israeli automotive tech company).



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