Mobileye Looking Forward to Tripling Valuation to $50 Billion

Intel plans to hold an initial public offering (IPO) of its Mobileye stock, that promises a tripling of its valuation to over $50 billion, Reuters reported on Tuesday.

The Israel-based Mobileye driver assistance systems and autonomous car development company was acquired by Intel in 2017 for $15.3 billion. Intel, which has full ownership of Mobileye, is expected to retain majority after the IPO, set for next year.

Intel said that the Mobileye executive team will stay on, with Prof. Amnon Shashua as CEO. Israeli 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 projects, will be folded into the Mobileye unit.

“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.”