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Intel Enters Self-Driving Car Market Bids a Mammoth $15.3 Billion Acquisition Deal

Intel

Ramping up names with like Google and Uber, apparently the driverless market is attracting some tech majors. Now, Intel has acquired an Israeli company named Mobileye that makes sensor and cameras for driverless vehicles. This segment will be the next potential market for automobiles and electronic companies. Intel understands the acquisition amount of startling $15.3 billion will be game-changer in the multi-billion autonomous sector.

And by acquiring Mobileye, whose digital vision technology helps autonomous vehicles safely navigate city streets, Intel aims to broaden its offerings beyond just chips to a wider suite of products that driverless vehicles will require.

It hopes, as a result, to appeal to automakers that want to offer autonomous driving but lack the in-house expertise and do not want to rely on the likes of Google.

Intel has a history with such strategic moves. It cornered the personal computer market over more than three decades, supplying hundreds of millions of desktop computers with much of their internal architecture, after dominating which microchips were used in the industry.

But in recent years, Intel has struggled to find its feet as people’s habits have increasingly turned to the mobile world, where the company’s chips have lost out to rivals.

Over the last 18 months, Intel has signed partnership deals with BMW and Delphi Automotive, an auto parts supplier, to expand its presence in the field. It also acquired a 15 percent stake in Here, a digital mapping business owned by a consortium of German automakers, and announced last year that it would invest $250 million in start-ups working on driverless car technologies.

Mobileye, founded in Jerusalem in 1999, has signed deals with several automakers, including Audi, for the use of its vision and camera technology, which uses machine learning and complex neuroscience to help drivers — and increasingly cars themselves — avoid obstacles on the road.

As part of the deal, Intel said it would buy Mobileye’s outstanding shares at $63.54 a share, a 34 percent premium to Mobileye’s closing price on Friday. The acquisition requires shareholder and regulatory approval, and is expected to close by the end of this year.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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