Intel plans to take self-driving car unit public in the U.S. in mid-2022

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  • It acquired Mobileye, an Israeli autonomous driving firm, in 2017 for $15.3 billion.
  • Intel’s stock price has fallen from $68 in April to less than $50 in December.
  • Founded in Jerusalem in 1999, Mobileye is one of Israel’s biggest success stories in technology.

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Intel has announced that it plans to list Israeli autonomous driving firm Mobileye, which it acquired in 2017 for $15.3 billion as part of an effort to branch into new markets.

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Santa Clara Chip Maker said on monday that it plans to take Mobileye public in the US through an initial public offering of newly issued Mobileye stock in mid-2022.

Intel, whose share price fell from $68 in April to less than $50 in December, said the listing would create value for Intel shareholders. It said it would remain a majority shareholder of Mobileye.

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Founded in Jerusalem in 1999 by Amnon Shashua and Jiv Aviram, Mobileye is one of Israel’s biggest success stories in technology. The company develops self-driving cars and advanced driver-assistance systems for other manufacturers.

Over the years, it has partnered with Tesla, BMW, Volvo and General Motors. Last July, it signed a deal with Ford to support its next generation of advanced driving and safety features in the automaker’s global product lineup. The deal involves Ford using Mobileye’s “IQ” Camera-based detection technologies for features such as forward collision warning and vehicle, pedestrian and cyclist detection.

In a statement, Intel CEO Pat Gelsinger acknowledged the acquisition of Mobileye as a success, adding that Mobileye revenues will be 40% higher in 2021 than in 2020.

Gelsinger, who took over as Intel’s CEO in January, said, “Amnon and I have determined that an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders. “

The Mobileye listing marks a return to the stock market for the company, which listed on the New York Stock Exchange in 2014 after receiving a $130 million investment from Goldman Sachs in 2007.

At the time of the Mobileye acquisition, the deal was considered expensive, especially considering that Intel had recently reported annual revenue of only $400 million. But the valuation of self-driving car companies has increased after the acquisition of Mobileye. Waymo and Cruise are both valued at over $30 billion.

Mobileye had a market value of $10.6 billion when Intel acquired it. It’s unclear what kind of valuation Intel would like to gain for Mobileye next summer.

Following the news, Intel stock rose nearly 8% in after-market trading on Monday, with shares climbing from about $49 to $51.

Overall, Intel’s stock price has struggled this year, while other chip firms, including Taiwan’s TSMC and graphics chip designer Nvidia, have seen their stocks rally.

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