Intel to Take Mobileye Public in 2024

Intel to Publicly List Mobileye in 2022

Intel has announced its intention to offer shares of Mobileye, its subsidiary specializing in advanced driver-assistance systems and autonomous driving technology, to the public next year. This move follows Intel’s acquisition of Mobileye for over $15 billion more than four years ago.

Potential Value and IPO Timeline

The decision to spin out Mobileye as a separate, publicly traded entity is expected to enhance value for Intel’s shareholders. Sources indicate the initial public offering (IPO) is anticipated within approximately six months.

This timeline suggests the standard IPO roadshow process hasn’t commenced yet. Estimates suggest Mobileye could be valued at exceeding $50 billion.

Strategic Partnership to Continue

Despite the IPO, Intel will retain majority ownership of Mobileye. The two companies will maintain a strategic partnership, continuing collaborative efforts in the advancement of automotive computing.

Intel has affirmed its commitment to not divest or fully spin off Mobileye, and will continue to consolidate the subsidiary’s financials.

Leadership and Organizational Alignment

Amnon Shashua will remain as CEO of Mobileye, leading the existing executive team. Intel’s teams focused on lidar and radar development will be integrated under Mobileye’s direction.

Furthermore, Moovit, the Israeli trip planning application acquired by Intel, will also be aligned with Mobileye.

Strong Financial Performance

Intel CEO Pat Gelsinger highlighted the success of the Mobileye acquisition. He stated that Mobileye has consistently achieved record revenue growth, with 2021 gains projected to be over 40% higher than in 2020.

This performance underscores the benefits of the ongoing partnership between the two companies. Both leaders agreed an IPO represents the optimal path to further innovation and shareholder value.

Growth Since Acquisition

Since being acquired in 2017, Mobileye has tripled its annual chip shipments, revenue, and employee base, according to Amnon Shashua.

Shashua emphasized that the continued alignment with Intel provides Mobileye with crucial technical resources and support. This support generates strong revenue and free cash flow, enabling continued investment in autonomous vehicle (AV) development.

Recent Developments and Partnerships

This announcement follows Mobileye’s recent partnership with Sixt to launch a robotaxi service in Germany next year.

The company has expanded its autonomous vehicle testing programs to numerous cities across the U.S., Europe, and Asia, including New York City.

Mobileye has also secured 41 new advanced driver-assistance system program wins with over 30 automakers.

• Plans are in place to produce 35,000 purpose-built driverless delivery vehicles with Udelv by 2028.
• Multiple deals for mobility-as-a-service programs are scheduled for 2023.