Mobileye To Be Bought By Intel In a $15.3 Billion Deal
Mobileye N.V. said Monday it agreed to be acquired by Intel Corp. in a deal with an equity value of $15.3 billion. Under terms of the agreement, Intel will commence a tender offer of $63.54 for each of the camera-based driver assistance system maker's shares outstanding, which represents a 34.4% premium to Friday's closing price of $47.27. Intel expects the deal, which it will fund with cash on hand, to immediately add to adjusted earnings per share. The deal is expected to close within the next nine months. "We expect the growth towards autonomous driving to be transformative," said Mobileye CEO Ziv Aviram. "By pooling together our infrastructure and resources, we can enhance and accelerate our combined know-how in the areas of mapping, virtual driving, simulators, development tool chains, hardware, data centers and high-performance computing platforms." Mobileye's stock had soared 33% in active premarket trade prior to a trading halt, while Intel shares dropped 1.6% ahead of the open. The deal was originally reported by Israel's TheMarker. Over the past 12 months, Mobileye's stock had climbed 35% through Friday, while Intel shares have gained 13% and the S&P 500 has run up 17%.
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