Business Liquidity

Intel’s $15.3B Mobileye deal isn’t its largest acquisition to-date

Morning Report: Intel’s massive deal to acquire Mobileeye isn’t its largest pickup to date, and it is merely one more acquisition among dozens for the venerable chip company.

Today’s news that Intel will acquire Mobileye for billions sent the share price of the smaller company up sharply, rising around 30 percent as of the time of writing.

It’s a deal that will materially impact first quarter M&A results. That matters, as the IPO dearth is still on, and big-ticket deals such as this will matter for investors at quarter-end. That Mobileye was a public company, reducing its exit’s impact on private investors to zero, is largely immaterial. Not all tech is venture.

The Mobileye deal isn’t Intel’s largest of all time, or even in the last few years. That record belongs to Altera, which Intel picked up for $16.7 billion in cash and stock in June, 2015. The Mobileye acquisition ranks second among Intel deals where terms are generally known.

Intel has made at least 86 acquisitions since 1997, including 9 in 2016 and 6 in 2015. The chart looks like this, including a non-rate-adjusted 2017 figure:

The chip company itself is off just over 2 percent in regular trading, bringing its market cap down to just under $167 billion using Google Finance data.

If you observe the chart, it should worry you slightly—provided that you are pro-M&A in the tech sector. Unless Intel hits go on another deal this quarter, the company will be on a reduced acquisition page when compared to four of the past six years.

Today in the Crunchbase Daily:

Intel to buy Mobileye for $15.3B

  • Intel announced that it plans to acquire Jerusalem-based Mobileye, a developer of computer vision technology used in autonomous driving applications, in a deal valued at $15.3 billion. The offer represents about a one-third premium over the prior share price for Mobileye, which went public in 2014. The purchase marks the largest-ever acquisition of an Israeli high-tech company.

Carvana reportedly planning IPO

  • Used auto retailer Carvana, which allows customers to pick up cars they buy online from vending machine-like towers, has tapped investment banks for an initial public offering, according to a Reuters report citing unnamed sources. Phoenix-based Carvana previously raised $300 million in venture funding, including $160 million in a Series C round that closed in August.

Skuid raises $25M Series B

  • Chattanooga-based Skuid, provider of a platform for building enterprise apps without writing code, has raised $25 million in a Series B funding round led by Iconiq Capital and joined by K1 Investment Management.

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.



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