decor decor
"Growth is never by mere chance; it is the result of forces working together."

-James Cash Penney

Intel to Acquire Mobileye

Financial Information
  • Enterprise Value                             $13.69 billion
  • EV/LTM Revenue                           38.2x
  • EV/LTM EBITDA                            109.5x
Transaction Facts
  • Intel Corporation (Nasdaq: INTC) announced today an agreement to acquire Mobileye (NYSE: MBLY), a technology supplier for autonomous vehicles.
  • Intel will pay $63.54 in cash for each share of Mobileye, which represents a 34.5% premium over the stock’s Friday closing price. The deal is expected to be immediately accretive to non-GAAP earnings and free cash flow.
  • Following the close of the transaction, Intel plans to relocate its automotive unit to Mobileye’s headquarters in Israel, joining 10,000 Intel employees already stationed.
  • In 2016, Mobileye generated $358 million in revenue and $108 million in net income.
Merging Lanes to Go Faster
 
  • Growth Carries A Premium: This represents the biggest-ever purchase of an Israeli tech company — 30x Mobileye’s 2017 revenue and 124x its operating profit. It is a continuation of an ongoing trend of accelerating growth in the self-driving sector, driven by consolidation among hardware and software technology providers.
  • Making It Official: With the purchase, Intel positions itself to fortify relationships with current partners and solidify its presence in the fast-growing autonomous vehicle market segment. The two companies have worked together in the past and are partners in multiple ongoing initiatives
  • Taking the Wheel: Intel seeks to tap into the market related to autonomous driving needs, which it estimates to be at $40 billion by 2030, and find an edge against its main competitor, Nvidia (Nasdaq: NVDA), whose patented GPU technology rivals Mobileye’s EyeQ product. Mobileye is developing production-ready Fully Autonomous Vehicles with BMW, and has deals with 27 major automakers.
  • Falling in Line: This deal draws parallels to several 2016 acquisitions of car technology providers, including GM’s purchase of Cruise Automation and Uber’s acquisition of Otto (for $690 million and $680 million, respectively). The deal is also reminiscent of Samsung Electronics’ $8.0 billion purchase of HARMAN, a connected car solutions provider, completed Saturday.
  • Big Deal: Intel often breaks out its pocketbook when it senses the opportunity to secure a competitive advantage. This is its second largest transaction of all time, following its $16.8 billion acquisition of semiconductor manufacturer Altera in 2015 and coming before its $7.7 billion acquisition of McAfee in 2010.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

15 Apr 2021

KKR to Acquire Ensono in $1.7 Billion Deal

Financial Information ($USD) Enterprise Value:    $1.7 Billion Transaction Details Global investment firm KKR & Co, Inc. (NYSE: KKR) is acquiring leading hybrid IT services provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners. While financials have not been disclosed, the transaction is valued at $1.7 billion inclusive of debt, according to Reuters....

12 Apr 2021

Microsoft Acquires Nuance in $19.7 Billion Deal

Financial Information ($USD) Enterprise Value: $19.7 Billion EV/LTM Revenue: 13.97x EV/LTM EBITDA: 89.55x   Transaction Details Microsoft (Nasdaq: MSFT) today announced that it will acquire Nuance Communications, Inc. (Nasdaq: NUAN) in an all-cash transaction valued at $19.7 billion. Nuance, a speech recognition and artificial intelligence company, will be acquired for $56.00 per share, approximately 23%...

22 Mar 2021

SYNNEX Announces Merger with Tech Data

SYNNEX Announces Merger with Tech Data   Financial Information ($USD) Enterprise Value: $7.2 Billion EV/LTM Revenue:  0.20x EV/LTM EBITDA: 9.50x   Transaction Details Leading distributor SYNNEX Corporation (NYSE: SNX) today announced that it will merge with fellow distributor, Tech Data, in a deal worth approximately $7.2 billion, including net debt. The deal creates a distribution...