Brian Krzanich, Intel CEO: The Future of Autonomous Driving Starts Today. Photo courtesy of Intel

Santa Clara, Calif., USA and Jerusalem, Israel - March 13, 2017

• Combining Technology and Talent to Accelerate the Future of Autonomous Driving.

• Brings together Mobileye’s leading computer vision expertise with Intel’s high-performance computing and connectivity expertise to create automated driving solutions from cloud to car.

• Positions Intel to accelerate innovation for automakers and to capture fast-growing market opportunity, estimated to be up to $70 billion by 2030.

• Acquisition expected to be accretive to Intel’s non-GAAP EPS and free cash flow immediately.

Intel Corporation (NASDAQ: INTC) and Mobileye N.V. (NYSE: MBLY) today announced a definitive agreement under which Intel would acquire Mobileye, a global leader in the development of computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems and autonomous driving.

Photo courtesy of Intel

Pursuant to the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing an equity value of approximately $15.3 billion and an enterprise value of $14.7 billion.

The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles.

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

Photo courtesy of Intel

This transaction extends Intel’s strategy to invest in data-intensive market opportunities that build on the company’s strengths in computing and connectivity from the cloud, through the network, to the device.

This acquisition will combine the best-in-class technologies from both companies, spanning connectivity, computer vision, data center, sensor fusion, high-performance computing, localization and mapping, machine learning and artificial intelligence.

Intel CEO Brian Krzanich (from left), Chairman of the Board of Management of BMW AG Harald Krüger and Mobileye Co-Founder, Chairman and CTO Professor Amnon Shashua speak at a news conference in Munich, Germany, on Friday, July 1, 2016. They are announcing a partnership among BMW Group, Intel and Mobileye to work together with the goal of bringing highly and fully automated driving into production by 2021. Photo courtesy of Intel / BMW Group

Together with partners and customers, Intel and Mobileye expect to deliver driving solutions that will transform the automotive industry.

The combined global autonomous driving organization, which will consist of Mobileye and Intel’s Automated Driving Group, will be headquartered in Israel and led by Prof. Amnon Shashua, Mobileye’s CoFounder, Chairman and CTO.

Intel CEO Brian Krzanich (from left), Chairman of the Board of Management of BMW AG Harald Krüger and Mobileye Co-Founder, Chairman and CTO Professor Amnon Shashua speak at a news conference in Munich, Germany, on Friday, July 1, 2016. They are announcing a partnership among BMW Group, Intel and Mobileye to work together with the goal of bringing highly and fully automated driving into production by 2021. Photo courtesy of Intel / BMW Group

The organization will support both companies’ existing production programs and build upon relationships with automotive OEMs, Tier-1 suppliers and semiconductor partners to develop advanced driving assist, highly autonomous and fully autonomous driving programs.

Intel Senior Vice President Doug Davis will oversee the combined organization’s engagement across Intel’s business groups and will report to Prof. Amnon Shashua after the transaction’s closing.

Intel Chief Executive Officer Brian Krzanich speaks at a news conference in Munich, Germany, on Friday, July 1, 2016. BMW Group, Intel and Mobileye are announcing a partnership among the three companies to work together with the goal of bringing highly and fully automated driving into production by 2021. Photo courtesy of Intel / BMW Group

“This acquisition is a great step forward for our shareholders, the automotive industry and consumers,” said Brian Krzanich, Intel CEO.
“Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”

Photo courtesy of Intel

“We expect the growth towards autonomous driving to be transformative. It will provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers,” said Mr. Ziv Aviram, Mobileye Co-Founder, President and CEO.
“By pooling together our infrastructure and resources, we can enhance and accelerate our combined know-how in the areas of mapping, virtual driving, simulators, development tool chains, hardware, data centers and high-performance computing platforms. Together, we will provide an attractive value proposition for the automotive industry.”

Photo courtesy of Intel

As cars progress from assisted driving to fully autonomous, they are increasingly becoming data centers on wheels.

Intel expects that by 2020, autonomous vehicles will generate 4,000 GB of data per day, which plays to Intel’s strengths in high-performance computing and network connectivity.

Photo courtesy of Intel

The complexity and computing power of highly and fully autonomous cars creates large-scale opportunities for high-end Intel® Xeon® processors and high-performance EyeQ®4 and EyeQ®5 SoCs, high-performance FPGAs, memory, high-bandwidth connectivity, and computer vision technology.

Photo courtesy of Intel

Transaction Details and Timing

The transaction is expected to be accretive to Intel’s non-GAAP EPS and free cash flow immediately.

Intel intends to fund the acquisition with cash from the balance sheet.

The transaction is expected to close within the next nine months.

Photo courtesy of Intel

It has been approved by the Intel and Mobileye Boards of Directors and is subject to the receipt of certain regulatory approvals and other closing conditions.

The offer is not subject to any financing conditions.

An Extraordinary General Meeting of Mobileye’s shareholders will be convened in connection with the offer to adopt, among other things, certain resolutions relating to the transaction.

Photo courtesy of Intel

For further information regarding the terms and conditions contained in the definitive agreement, please see Intel’s Current Report on Form 8-K and Mobileye’s Current Report on Form 6-K, which will be filed with the Securities and Exchange Commission in connection with this transaction.

The offer will be described in more detail in a tender offer statement on Schedule TO to be filed by Intel and one or more of its subsidiaries and a solicitation/recommendation statement on Schedule 14D-9 to be filed by Mobileye.

Photo courtesy of Intel

Citi and Rothschild Inc. serve as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel to Intel.

Raymond James & Associates, Inc. serves as financial advisor and Morrison & Foerster LLP serves as legal counsel to Mobileye.

Photo courtesy of Intel

For more information, investors are encouraged to visit http://intelandmobileye.transactionannouncement.com  ,

which will be used by Intel and Mobileye to disclose information about the transaction and comply with Regulation FD.

Transaction Discussion Webcast Intel and Mobileye management will hold a public webcast at 5:30 a.m. PT (8:30 a.m. ET) today to discuss the transaction.

Photo courtesy of Intel

The live webcast and a copy of the presentation materials can be found at http://intelandmobileye.transactionannouncement.com  

The live webcast can also be accessed in the United States at 1-855-631-5368 and outside the United States at +1-330-863-3283 with the passcode 84684571.

A webcast replay and a copy of the webcast presentation materials will also be available on Intel’s Investor Relations website at www.intc.com  and on Mobileye’s Investor Relations website at ir.mobileye.com.

Photo courtesy of Intel

About Intel

Intel expands the boundaries of technology to make the most amazing experiences possible.

Information about Intel can be found at newsroom.Intel.com and Intel.com.


About Mobileye N.V.

Mobileye N.V. is the global leader in the development of computer vision and machine learning, data analysis, localization and mapping for Advanced Driver Assistance Systems and autonomous driving.

The Company's technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving.

The Company's proprietary software algorithms and EyeQ® chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles.

The Company's products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items; identify and read traffic signs, directional signs and traffic lights; create a Roadbook™ of localized drivable paths and visual landmarks using REM™; and provide mapping for autonomous driving.

The Company's products are or will be integrated into car models from more than 25 global automakers.

The Company's products are also available in the aftermarket.

Photo courtesy of Intel

CONTACTS:

Laura Anderson
Intel Media Relations
480-552-9020
laura.m.anderson@intel.com  

Mark Henninger
Intel Investor Relations
408-653-9944
Mark.h.henninger@intel.com  

Alexis Blais
Mobileye Media Relations
203-682-8270
Mobileyepr@icrinc.com  

Dan Galves
Mobileye Investor Relations
718-799-9125
Dan.galves@mobileye.com  

Photo courtesy of Intel

E-mail to Intel Employees by Intel CEO Brian Krzanich on March 13, 2017

Intel employees,

I am very excited to announce today that Intel has entered into an agreement to acquire Mobileye, the leading supplier for computer vision systems in the automotive industry.

The acquisition of Mobileye brings together the assets of Intel’s Xeon processors, FPGAs, 3D XPoint memory, and 5G modems with the world leader in automotive computer vision. This acquisition essentially merges the intelligent eyes of the autonomous car with the intelligent brain that actually drives the car.

Autonomous driving is estimated to be a $70 billion vehicle systems and data services TAM opportunity by 2030.
The combination of Intel’s high performance computing and connectivity solutions with Mobileye’s best in class computer vision technology will put us in a position to accelerate innovation for car-makers and lead in delivering the technology foundation for highly and fully autonomous driving.
Our complementary assets accelerate the “rack scale” end-to-end autonomous solutions that customers demand.
I truly believe we are better together.

Many of you have asked why we think autonomous cars and vehicles are so important to Intel’s future.
The answer is DATA.
Our strategy is to make Intel the driving force of the data revolution across every technology and every industry.
We are a DATA company.
The businesses we focus on, and deliver solutions to, create, use and analyze massive amounts of data.

I recently had a chance to speak at the LA Auto show and the title of my presentation was “Data is the New Oil.”
My message was simple: automobiles and the automotive industry are increasingly driven by data and computing.
The saying “What’s under the hood” will increasingly refer to computing, not horsepower.

At four terabytes of data per day, the average autonomous car will put out the data equivalent of approximately 3,000 people.
Put just one million autonomous vehicles on the road and you have the data equivalent of half the world’s population.
This massive amount of data requires all of Intel’s assets to provide the cost-effective highperformance solutions our customers need.
The addition of Mobileye to our family provides the data path to our computing solutions becoming the intelligent set of eyes that will allow a vehicle to see and define the world around it.

I can’t wait to begin working with the combined global autonomous driving organization.
It is important to note, however, that the next several months will be business as usual for both Intel and Mobileye.
We are legally required to operate as separate companies until the transaction closes, which is expected to occur within the next nine months.

As you’ve heard me say, others predict the future.
At Intel, we build it.
This is not the first time we’ve taken bold steps that have transformed our future, the industry and the impact of technology on the world.
I believe that today’s announcement puts us in the driver’s seat to achieve our vision of creating the technology foundation on which the future of autonomous driving will be built.

Brian


Source: Intel Newsroom

https://newsroom.intel.com/  



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