Intel has completed its acquisition of self-driving automobile technology developer Mobileye, as the tech giant edges towards a connected car reality.
For a fee of US$15.3 billion, the vendor purchased approximately 84 per cent of Mobileye’s outstanding ordinary shares.
Headquartered in Israel, the company specialises in the development of computer vision and machine learning, data analysis, localisation and mapping for advanced driver assistance systems and autonomous driving.
The acquisition is expected to accelerate innovation for the automotive industry, positioning Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles.
“With Mobileye, Intel emerges as a leader in creating the technology foundation that the automotive industry needs for an autonomous future,” Intel CEO Brian Krzanich said.
“It’s an exciting engineering challenge and a huge growth opportunity for Intel. Even more exciting is the potential for autonomous cars to transform industries, improve society and save millions of lives.”
According to Krzanich, the acquisition will allow Mobileye’s computer vision expertise - known as the ‘eyes’ - to complement Intel’s high-performance computing and connectivity expertise - known as the ‘brains’ - in a bid to create automated driving solutions from cloud to car.
With the vehicle systems, data and services market opportunity estimated to reach US$70 billion by 2030, terms of the deal will see Intel’s Automated Driving Group (ADG) combine its operations with Mobileye, an Intel Company.
Consequently, the combined Mobileye organisation will lead the vendor's autonomous driving efforts, tapping into resources and technology from the larger organisation to "define and deliver" cloud-to-car solutions for the automotive market segment.
From a logistics perspective, Mobileye will remain headquartered in Israel and will be led by Professor Amnon Shashua, who will serve as Intel senior vice president and Mobileye CEO and chief technology officer.
In addition, Ziv Aviram, Mobileye co-founder, president and CEO, is retiring from the company, effective immediately.
“Leading in autonomous driving technology requires a combination of innovative proprietary software products and versatile open-system hardware platforms that enable customers and partners to customise solutions,” Professor Shashua added.
“For the first time, the auto industry has a single partner with deep expertise and a cultural legacy in both areas. Mobileye is very excited to begin this new chapter.”
Going forward, Professor Shashua said Mobileye will support and build on both companies’ existing technology and customer relationships with automakers, tier‑1 suppliers and semiconductor partners to develop advanced driving assist, highly autonomous and fully autonomous driving programs.