Intel has revealed that its intended purchase of Israeli-based Mobileye was approved by the Israeli Antitrust General Director. The approval will now allow Cyclops Holdings, which is wholly owned by Intel, to acquire all of Mobileye’s outstanding shares.
The tender offer will, however, only be completed once additional conditions have been fulfilled such as obtaining the approval of non-United States jurisdictions as well as ensuring that a minimum of 95% of the outstanding shares belonging to Mobileye have been validly tendered.
At the same time shareholders of Mobileye have given their approval for the sale of the firm to Intel with an overwhelming majority of 98.2% voting in favor. The percentage of shareholders who attended the meeting were 58%. About 1.8% of the meeting’s attendees abstained while 0.04% voted against. Several clauses that relate to the acquisition of Mobileye by Intel and which are necessary in order for the deal to be completed were also ratified.
During the release of Mobileye’s 2017 first quarter financial results, Ziv Aviram, the chief executive officer of the company said the deal would be a win both for shareholders and the motor vehicle industry as a whole.
“The acquisition by Intel will combine the two companies’ technologies, the best of their kind, and expedite our creation of value for the auto industry, while generating high value for the shareholders,” said Aviram.
The aim of Intel’s acquisition of Mobileye was to diversify from its overreliance on the computer semiconductor business. It also came at a time when the market for autonomous vehicles and driver assistance systems is estimated to balloon from $3 billion two years ago to reach a figure of $96 billion in the next 8 years and $290 billion in the next 18 years.
In Mobileye’s portfolio includes roadway mapping, cloud software, data fusion, data management, machine learning, in-car networking, sensor chips and cameras. Currently, the Israeli company supplies various components that are used in driverless cars such as software and chips used in driver-assist systems and cameras to over 20 car manufacturers. The company was one of the pioneering suppliers of vision systems to electric car-maker and the biggest car company in the United States by market capitalization, Tesla.
The approval of the acquisition comes at a time when the market for autonomous vehicle technology is increasingly becoming crowded. Some of the established players include Waymo, the self-driving car unit of Alphabet, Baidu and lately even Apple has joined the fray.