Tuesday, 14 March 2017

Intel To Buy Driveless Technology Firm MobileEye

Back in 2016 rumours circulated that Intel had teamed up with BMW and driverless technology firm MobileEye to develop self-driving cars. Fast forward to 2017 and now its appears Intel have scrapped their initial idea and have now decided to buy MobileEye for $15.3 billion dollars.

During a live news segment on Squawk on Street, CNBC's Jim Cramer explained why felt the new acquisition was a great idea.
"This is very forward looking. And this market is just ... not going away. It is accelerating rapidly,"
The company have also spoken out saying the deal is expected to be closed in a few months.
“Under the terms of the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion,”
Intel's CEO, Brian Krzanich also released a personal statement on the pending acquisition stating,
“This acquisition is a great step forward for our shareholders, the automotive industry and consumers. Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”

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