Intel will list the shares of its self-driving car division via an IPO
The move will reportedly value the company to more than $50 billion
Intel announced its plans to publicly list the shares of its self-driving car division, Mobileye, in the U.S., in 2022, via an initial public offering (IPO).
Wall Street Journal reported that the move could value the company to more than $50 billion.
Founded in 1999, Mobileye has partnered with Tesla, BMW, Volvo, and General Motors. It signed a deal with Ford, in July 2020, to support its next generation of advanced driving and safety features across the automaker’s global product lineup.
The U.S. chipmaker bought the Israeli firm for $15.3 billion in 2017 in a $63.54 per share cash deal. Mobileye accounted for 70% of the global market for advanced driver-assistance and anti-collision systems, back then. It was the largest acquisition of an Israeli high-tech company at that time.
Mobileye’s revenues have roughly tripled since Intel bought it. It had $326 million of revenue in the third quarter, a 39% year-over-year increase. Intel had over $19 billion in revenue in the period.
The executive team of Mobileye will continue to be led by CEO Amnon Shashua. A statement released by the company mentioned that the Intel teams working on lidar and radar development will be aligned under Mobileye, as will Moovit, an Israeli trip planning app that was recently acquired by Intel.
“Intel’s acquisition of Mobileye has been a great success. Mobileye has achieved record revenue year-over-year with 2021 gains expected to be more than 40 percent higher than 2020, highlighting the powerful benefits to both companies of our ongoing partnership,” Intel CEO Pat Gelsinger said in a statement. “Amnon and I determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”
Picture Credits: Mobileye