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Intel shares responded positively to the news, soaring as much as 7.53% to $54.83 in the pre-market.
Santa Clara, California-based American multinational corporation and technology company, Intel Corporation (NASDAQ: INTC) has announced it will be taking its subsidiary, Mobileye public in mid-2022. Mobileye is one of Israel’s major success stories in tech and was purchased by Intel for $15.3 billion in 2017.
The plans to go public will be through the popular Initial Public Offering (IPO) route and will involve the issuance of new stock. While the company did not state the amount of valuation it is looking to value the company per the IPO, the autonomous self-driving tech industry has grown remarkably since Intel acquired the firm, and investors will be pricing the shares based on this valuation. Intel said the new listing will create additional value for its shareholders.
“Intel’s acquisition of Mobileye has been a great success. Mobileye has achieved record revenue year-over-year with 2021 gains expected to be more than 40 percent higher than 2020, highlighting the powerful benefits to both companies of our ongoing partnership,” Intel CEO Pat Gelsinger said. “Amnon and I determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”
With the growing world of self-driving cars, Mobileye is one of the biggest names in the industry. This year, Mobileye has shipped the one-millionth software of one of its flagship products EyeQ® system-on-chip (SoC), scaled autonomous vehicle (AV) test programs across multiple cities around the world covering the US, Europe, and Asia. In addition to this milestone, the startup has also unveiled its production robotaxi and secured 41 new ADAS program wins across more than 30 automakers globally.
Intel shares responded positively to the news, soaring as much as 7.53% to $54.83 in the pre-market. As the market opened, the stock is 3% up. Intel says it will remain the largest shareholder in Mobileye and Prof. Amnon Shashua continuing as the company’s CEO.
Intel and Mobileye Pushing the Boundaries of Self Driving Cars
Both Intel and Mobileye invested in autonomous driving technologies. Mobileye’s new program wins range from core driver-assistance technology through next-generation driver-assistance and full self-driving systems. In addition to these, Mobileye’s deals also vary and expand into various aspects of Mobility-as-a-Service (MaaS) offerings.
“Mobileye has realized accelerated growth and opportunity since joining the Intel family, nearly tripling annual chip shipments, revenue, and the number of employees since the acquisition,” said Shashua, founder and CEO of Mobileye. “Our alignment with Intel continues to provide Mobileye with valuable technical resources and support that has yielded strong revenue along with free cash flow that allows us to fund our AV development work from current revenue. Intel and Mobileye’s ongoing technology co-development will continue to deliver great platform solutions for our customers.”
Despite the broad autonomy that Mobileye operates with, Intel said it will invest the needed resources to help the startup push forth its core production targets. According to the announcement, a final decision on the IPO and its conditions and ultimate timing are pending and subject to market conditions.