Intel has announced plans to float its Israeli driver assistance systems and autonomous car development unit Mobileye in the US next year, through an initial public offering (IPO) of newly issued Mobileye stock, Trend reports with reference to Globes.
Jerusalem-based Mobileye went public on Nasdaq in 2014 and was delisted after being acquired by Intel in 2017 for $15.3 billion. "Reuters" reports, according to a source, that next year's flotation could see Mobileye's valuation more than tripled to over $50 billion. Mobileye is currently fully owned by Intel, which says it will retain majority ownership following the completion of the IPO.
Intel added that the Mobileye executive team will remain, with Prof. Amnon Shashua as the company’s CEO. Israeli mobility as a service provider and journey planner Moovit, which Intel bought last year for $900 million, as well as Intel teams working on lidar and radar development and other Mobileye projects, will become part of Mobileye.
Intel said that in the four years since Mobileye was acquired by Intel, Mobileye has reported substantial revenue growth, achieved numerous technical innovations and made significant investments directed to solving the most difficult scientific and technology problems to prepare the deployment of autonomous driving at scale. Mobileye's revenue in the third quarter of 2021 was $326 million, up 39% from the corresponding quarter of last year.
"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."
Shashua said, "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. 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."