American chipmaker Intel reportedly will agree to a $1 billion acquisition of Israeli transportation app developer Moovit in the coming days.
Negotiations between the Silicon Valley and Ness Ziona firms commenced about six months ago, Hebrew-language daily TheMarker reported on Sunday, with approximately 10% of the purchase price expected to be paid to retain workers for the next two years.
Intel already holds a stake in Moovit. Its investment branch Intel Capital led a $50m. fundraising round in the company in February 2018. Intel senior vice president and Mobileye CEO Prof. Amnon Shashua joined the company’s board of directors as an observer following the deal.
Representatives of Intel and Moovit refused to comment on the report when asked by The Jerusalem Post.
Launched in 2011, the Moovit app and website assists individuals plan and navigate their way around urban areas, using all modes of available transportation. The company says it has served more than 720 million users in some 3,100 cities, spanning six continents.
Moovit uses up to six billion anonymous data points daily “to add to the world’s largest repository of transit and urban mobility data,” the company said.
In addition to its popular app, the company also provides analytics platforms to cities, transit authorities and businesses, enabling optimized planning and operations for residents and employees.
Should the acquisition be agreed to, the deal would represent the latest in Intel’s long list of investments in Israel.
In December 2019, Intel announced the acquisition of Tel Aviv-based AI processor developer Habana Labs in a deal worth approximately $2b. The company’s largest local acquisition and record exit of an Israeli company to date was the purchase of Mobileye for $15.3b. in August 2017.
Intel directly employs some 13,700 workers in Israel. Its exports from operations in the country rose to an unprecedented high of $6.6b. in 2019 as it continues to deepen its activity in the local market.
A recent study published by the Technion-Israel Institute of Technology found that Intel Israel’s operations indirectly contribute to the employment of a further 53,000 individuals.