Intel Corp. (INTC) - Get Report said Tuesday that it has completed the purchase of 84% of the stock of Mobileye NV (MBLY) through an exchange offer, meeting the minimum threshold of acceptance to close it $15.3 billion purchase of the self-driving car technology company. Intel achieved the threshold of shareholder participation outlined in the deal, but will allow more investors to tender before officially closing the deal.
Intel described Mobileye's camera sensors and visual computing technology as eyes that pair with the chips and components that make up the brains of the self-driving car, in a Tuesday press release.
"What customers are looking for is this ability to really come to one place," CEO Brian Krzanich said during a media call, regarding the technology that Intel and MobilEye bring together. The chain of technology spans the computer vision sensors at the front of the car, computing, 5g wireless connectivity and data center technology that advanced driver assistance services require, he said.
Mobileye co-founder Ammon Shashua said the companies bring together the technology for mapping, interpreting and following the rules of the road, merging into traffic, ensuring safety and other aspects of artificial intelligence.
Intel is one of several big tech companies that are using acquisitions to target the self-driving car market, which Krzanich said will be worth $70 billion annually in hardware, software and services by 2030.
Samsung Electronics (SSNLF) completed its $8 billion purchase of connected car products maker Harman International Industries in May. And mobile chipmaker Qualcomm Inc. (QCOM) - Get Report is trying to acquire NXP Semiconductors NV (NXPI) - Get Report for $47 billion. Activist investor Elliott Management launched a campaign on Friday to disrupt the purchase, arguing that the $110 per share price is too low. Wall Street agrees, as NXP shares traded at $113.27 on Tuesday morning.
Mobileye co-founder and CEO Ziv Aviram has retired from the company, Intel said.
Aviram's 18 year tenure at Mobileye included "all of the important strategic injunctions," fellow co-founder Shashua said, including the biggest-ever Israeli IPO in 2014 and the sale agreement to Intel in March. "After 18 years a person is entitled to start a new path," Shashua said.
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