Intel Buys Israeli Moovit for $900 Million

Moovit joins Mobileye, another Israeli mobility software company, which Intel bought in 2017 for $15.3 billion.

Intel  (INTC) - Get Report announced Monday that it has bought Tel Aviv-based Moovit, a mobility-as-a-service software company, for about $900 million.

Moovit, which has over 800 million global customers for its journey-planning offerings, will now join with Mobileye, a Jerusalem-based mobility software company that Intel purchased in 2017 for $15.3 billion.

Moovit uses artificial intelligence and big data analytics to monitor traffic and provide transit recommendations. It has about 200 employees.

“The addition of Moovit brings Intel’s Mobileye closer to achieving its plan to become a complete mobility provider, including robo-taxi services, which is forecast to be an estimated $160 billion opportunity by 2030,” Intel, the world’s biggest semiconductor maker, said in a statement.

"With this acquisition, Mobileye will be able to use Moovit's large proprietary transportation data set to optimize predictive technologies based on customer demand and traffic patterns, as well as tap into Moovit's transit data repository of more than 7,500 key transit agencies and operators, and improve the consumer experience," Intel said.

Last month, Intel reported stronger-than-expected earnings for the first quarter but weaker-than-expected adjusted profit guidance for the second quarter.

The company registered first-quarter adjusted profit of $1.45 per share on revenue of $19.8 billion, compared to forecasts of $1.28 and $18.7 billion.

For the second quarter, though, the company said it expects revenue of $18.5 billion on adjusted profit of $1.10 per share, compared to estimates of $17.97 billion and $1.19.

Intel shares recently traded at $56.92, down 0.95%. The stock has dropped 12% over the past three months, compared to a 13% slide for the S&P 500.