Intel’s Mobileye files for proposed Wall Street IPO at estimated $50b valuation

Jerusalem-headquartered autonomous driving subsidiary to go public later this year

Ricky Ben-David is The Times of Israel’s Tech Israel editor and reporter.

A self-driving vehicle from Mobileye’s autonomous fleet sits outside Mobileye’s autonomous vehicle workshop in Israel. (Mobileye, an Intel Company)
A self-driving vehicle from Mobileye’s autonomous fleet sits outside Mobileye’s autonomous vehicle workshop in Israel. (Mobileye, an Intel Company)

Mobileye, Intel’s Jerusalem-headquartered autonomous driving subsidiary, has confidentially filed for a proposed IPO on Wall Street with the US Securities and Exchange Commission (SEC). Intel said Mobileye submitted Form S-1 on Monday, a draft registration statement to be listed on a national stock exchange.

The number of Mobileye shares to be offered and the price range for the proposed offering have not yet been determined, Intel said.

The chip giant announced in December that it intends to take Mobileye, a world leader in self-driving technologies, public this year at a valuation of approximately $50 billion. Intel bought Israel’s Mobileye in 2017 for over $15 billion, a transaction that remains the largest exit for an Israeli tech company to date.

Intel said making Mobileye a public company would “unlock the value of Mobileye for Intel shareholders by creating a separate publicly traded company and will build on Mobileye’s successful track record and serve its expanded market.”

The multinational said it will remain the majority owner of Mobileye, and the two companies will continue working together as they “pursue the growth of computing in the automotive sector.”

The Mobileye executive team will remain in place, with co-founder Amnon Shashua continuing as the company’s CEO.

Intel CEO Pat Gelsinger (right) and Professor Amnon Shashua, Intel senior vice president and president and CEO of Mobileye, talk during Gelsinger’s visit to Mobileye headquarters in Israel in 2021. (Mobileye, an Intel Company)

Moovit, the Israeli transit tech company Intel bought in 2020 for $900 million, and internal teams working on self-driving technologies will become “aligned as part of Mobileye,” Intel said in December.

The acquisition of Moovit enabled Intel to tap into a huge amount of data regarding transportation and transit in cities around the world, as Mobileye seeks to become a complete mobility provider, offering robotaxi services. Mobileye and Moovit generate complementary data: the data that Mobileye generates relates to vehicles, while Moovit generates data about people on the move.

An autonomous vehicle powered by Mobileye’s self-driving systems tec in Paris, December 2021. (Mobileye)

“Intel’s acquisition of Mobileye has been a great success,” Intel CEO Pat Gelsinger said at the time.

Gelsinger said he and Shashua came to the conclusion that “an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”

Founded in 1999, Mobileye went public in 2014 on the New York Stock Exchange before being acquired by Intel.

The Jerusalem unit now plays a key role in Intel’s global operations. Intel is set to open a new $400 million R&D facility for Mobileye as it becomes the US giant’s hub for developing autonomous vehicle technologies.

“Mobileye is a major growth business that’s deemed to be a key part of Intel’s future,” the company has said.

Separately, Mobileye also has a number of running partnerships to supply self-driving systems to California delivery startup Udelv, which plans to have a fleet of autonomous delivery vehicles on the roads within two years, and with two French-based firms to jointly develop and deploy commercial autonomous shuttles for public transportation services in Europe in 2023.

Benteler EV Systems, Beep Inc. and Mobileye, on February 14, 2022, announced a strategic collaboration to develop and deploy automotive-grade, fully electric and autonomous movers across public and private communities in North America. (Benteler)

Last month, Mobileye announced that it was partnering with two mobility firms to develop and deploy self-driving, fully electric shuttles in the US in 2024.

In February Intel also announced the forthcoming acquisition of Israeli firm Tower Semiconductor, a chip and semiconductor manufacturer based in Migdal HaEmek, for $5.4 billion.

Tower makes analog semiconductor chips for the consumer, industrial, automotive, mobile, infrastructure, medical, aerospace, and defense sectors.

The purchase will boost Intel’s semiconductor manufacturing abilities to meet demand from global customers, the chipmaker giant said.

Intel has three major development centers in Israel — in Haifa, Petah Tikva and Jerusalem — tasked with some of the company’s major processor operations, and an advanced chip manufacturing plant in Kiryat Gat, which is expanding. The company is also building a second $200 million campus in Haifa to develop the “chips of the future.”

Intel has also bought Israeli company Screenovate, a developer of beaming and mirroring solutions for mobile devices, last December, as well as artificial chipmaker Habana Labs in 2019. It acquired Replay Technologies, a developer of 3D reconstruction technologies for large-scale sports events, in 2106, but shut it down in 2021.

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