Information superhighway

13 March 2017 By Robert Cyran Follow @rob_cyran

Buying Mobileye for $15 bln values the autonomous-car parts supplier at 30 times estimated revenue. It’s possible to see how Intel’s gamble could pay off in this rapidly growing market. But its M&A record is patchy and the price assumes near-perfect success in a far-flung future.

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Intel said on March 13 it has agreed to buy Mobileye for $15.3 billion, or $63.54 per share. The Israeli company specializes in computer vision, machine learning, data analysis, localization and mapping for autonomous driving. Its shares closed at $47.27 on March 10, the last day of trading before the deal was announced. Intel expects to cut around $175 million in costs by 2019.

Mobileye accounts for 70 percent of the global market for advanced driver-assistance and anti-collision systems.

Intel estimates the vehicle systems, data and services market opportunity to be around $70 billion by 2030.

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