Intel Corporation INTC on Monday announced it struck a deal to acquire driverless car technology company Mobileye N.V. MBLY for more than $15 billion. The deal marks the next step in the driverless car race.
Mobileye’s stock is up 28.45% in afternoon trading on Monday to $60.71 per share, near its all-time high, and is currently a Zacks Rank #3 (HOLD). Intel’s stock dropped 2.31% to $35.08 per share.
Israel-based Mobileye, which specializes in chip-based camera systems called “artificial vision sensors” that alert drivers in real-time to potential road hazards, was founded in 1999 and it went public in July 2014. The IPO came after Mobileye began to invest in driverless car technology. The company’s current market cap is nearly $10.5 billion.
Intel’s $15.3 billion acquisition is the biggest ever for an Israeli technology company. The move positions Intel as a “leading technology provider in the fast-growing market for highly and fully autonomous vehicles,” according to a company statement Monday. The technology giant estimates that the vehicle systems, data and services market could reach $70 billion by 2030.
Mobileye previously worked with Tesla, Inc. (TSLA) to help power the electric carmaker’s Autopilot technology. The two companies parted ways after a Tesla driver died in a car crash on May 7, 2016, while using its Autopilot feature.
The race towards autonomous car technology is heating up, as giants like Alphabet Inc.’s (GOOG) Waymo, QUALCOMM Incorporated (QCOM) and Uber fight for poll position in the driverless car race.
Now, investors and analysts are taking to social media to discuss the Mobileye and Intel merger. As always, we collected some of our favorite Tweets:
Re-invention of Intel continues.. Brian Krzanich--a great deal for Intel.. Mobileye is a dominant player in autonomous driving— Jim Cramer (@jimcramer) March 13, 2017
The Mobileye acquisition will have more impact on tech investing in next 12 months than Snap IPO will, and will get 2% the attention.— Paul Kedrosky (@pkedrosky) March 13, 2017
Intel's acquisition of Mobileye is good news 4 HERE as their tech can now b much more strategically integrated than under a partnership— carolina milanesi (@caro_milanesi) March 13, 2017
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