The decision is expected to enable Intel in unlocking the value of Mobileye for its shareholders through the creation of a separate publicly-listed company, while consolidating on the subsidiary’s track record
A self-driving vehicle developed by Mobileye. (Credit: Mobileye, an Intel Company)
Intel has revealed plans to enable its subsidiary Mobileye to go public in the US by taking the initial public offering (IPO) route in mid-2022.
According to Intel, its decision will enable unlocking the value of Mobileye for shareholders through the creation of a separate publicly-listed company. Besides, it will consolidate Mobileye’s track record and help cater to its expanded market, said Intel.
Mobileye is a provider of driver-assistance and autonomous driving solutions. It was acquired by Intel for nearly $15.3bn in 2017.
Prior to its acquisition by Intel, the company was publicly trading since 2014.
Following its acquisition, Mobileye had seen significant growth in revenue, while making various technical innovations and considerable investments to prepare the launch of autonomous driving at scale, said Intel.
Mobileye founder and CEO Amnon Shashua said: “Mobileye has realised 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.”
Intel will retain a majority stake in Mobileye. The two firms will continue as strategic partners, working on projects in an effort to pursue the growth of computing in the automotive industry.
Intel CEO Pat Gelsinger said: “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 per cent higher than 2020, highlighting the powerful benefits to both companies of our ongoing partnership.
“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.”
Intel is expected to retain Mobileye’s executive team and will continue with Shashua as Mobileye’s CEO.
The semiconductor major added that Moovit and its own teams working on lidar and radar development along with other Mobileye’s projects will be aligned as part of the newly created publicly trading company.
Moovit, which is a mobility-as-a-service (MaaS) solutions company, was acquired by Intel in May 2020 for around $900m. The acquisition was taken up with an objective to accelerate Mobileye’s MaaS offering.
Intel said that it has no plans of spinning off or selling its majority ownership stake. However, the company said that a final decision on Mobileye’s IPO and its conditions and the eventual timing are not yet finalised and are subject to market conditions.