News Item: Intel says plans to take car tech unit Mobileye public
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Semiconductor giant Intel said it plans to list shares in its car technology arm Mobileye publicly in the United States in mid-2022, a move reports said could value the subsidiary at over 50 billion dollars.
In a statement published late Monday, Intel specified that it would remain the majority shareholder and that the two companies would continue to work closely together.
Mobileye’s executive team will also remain in position, it added.
The Wall Street Journal, quoting sources familiar with the matter, said the Israeli firm could be valued at over 50 billion dollars.
“Intel’s acquisition of Mobileye has been a great success,” Intel CEO Pat Gelsinger said in a statement, adding that he and his Mobileye counterpart “determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”
Mobileye, which makes technology for automated driving systems in vehicles, was acquired by Intel in 2017 for just over 15 billion dollars.
Its speciality includes systems for accident avoidance, using real-time camera systems that work with algorithms to interpret the data.
The firm’s proprietary EyeQ5 computer vision processor receives input from 360-degree surround view sensors as well as localisation.
Mobileye collaborated with electronic car giant Tesla for its Autopilot system, but put an end to that partnership in 2016, citing security concerns.
It supplies its technology to many major automakers, including BMW, Audi, Volkswagen, Nissan, Honda and General Motors.
Before Intel’s takeover, Mobileye was publicly listed for the first time in 2014.
Its revenue between July and September was 326 million dollars, a 39 percent increase on 2020.
Intel’s shares rose 8.5 percent, to $55.34, in pre-market trading.