U.S. chipmaker Intel Corp. (INTC) is in advanced talks to buy Israeli public transit app developer Moovit for $1 billion, according to reports in the Israeli financial press.
The deal is said to be very close to being signed, according to people with knowledge of the talks, who spoke on condition of anonymity, according to the reports.
Founded in 2012, Israeli-based urban mobility app Moovit has raised about $133 million from companies including BRM Capital, Hanaco, BMW i Ventures, Sequoia Capital Israel, and Vintage Investments Capital. Moovit is a mobile navigation app with over 800 million users, which provides real-time public transit information in 3,200 cities, 103 countries and 45 languages.
Intel has made a number of key acquisitions in Israel in recent years. Back in March 2017, the chipmaker bought autonomous car systems developer Mobileye for $15.3 billion. The purchase of Moovit would put Intel in control of vast amounts of data analytics targeted to manage urban transportation and mobility.
Five-star analyst Matthew Ramsay at Cowen & Co. maintained the chipmaker stock’s Hold rating but lowered the price target to $60 from $64, citing long-term competitive challenges following “impressive” first-quarter results driven by stronger demand due to work-at-home and homeschooling needs during the coronavirus pandemic.
Overall, Wall Street analysts are divided over Intel’s stock with 14 Holds, 11 Buys and 3 Sells adding up to a Moderate Buy consensus rating. The $62.44 average price target implies 8.7% upside potential in the next 12 months. (See Intel stock analysis on TipRanks)
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