Published On: Tue, Jul 1st, 2014

MobilEye Hopes to Be Worth More Than $2.7 Billion After Its IPO

Israel’s MobilEye is gearing up for its IPO in New York.

 

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Israeli company MobilEye, which develops a collision warning system for automobiles, anticipates that it will have a company valuation of as much as $2.7 billion from its initial public offering. This according to a statement released by Delek Auto, which owns 2.3% of the company.

Delek Auto has stated that MobilEye intends to sell its shares for $64.45 each. It acquired this information when MobilEye informed its current investors of its plans should they wish to sell their shares in the company at the IPO.

Goldman Sachs and Morgan Stanley are leading the offering which will be made on the New York Stock Exchange.

This announcement, however, contradicts what MobilEye stated in May. Then the company said that it expected to raise $1 billion from its IPO for a valuation between $3 and $5 billion.

Mobileye is a technological leader in the area of software algorithms, system-on-chips and customer applications that are based on processing visual information for the market of driver assistance systems (DAS). The company states that its technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving.

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Its proprietary software algorithms and EyeQ chip perform detailed interpretations of the visual field in order to anticipate possible collisions with other licensed vehicles, pedestrians, animals, debris and other obstacles. Their products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights.

MobilEye had revenues $81.2 million in 2013, twice the amount for 2012. In June 2013, it raised $400 million when it sold 25% of its shares, giving it a $1.5 billion valuation at the time. Goldman Sachs invested $100 million in the company in 2007. Israel’s Bank Leumi and Colmobil Corporation are also investors. The company’s co-founders each have a 9.3% stake.

Just last month four Vancouver taxi companies installed MobilEye’s GPS tracking and collision avoidance technology in their cabs to improve safety and save money. And their distributor in Malaysia, ProICE, launched the Mobileye560 on June 4th and 5th in that country.

The company was founded in 1999 by Professor Amnon Shashua, its chairman of the board and chief technical officer. A professor of computer science at the Hebrew University in Jerusalem, he once chaired the school’s department of engineering and computer science. He also founded CogniTens, provider of 3D optical measurement solutions for industrial applications.

Ziv Aviram is the co-founder, president and chief executive officer of MobilEye. A graduate of the Ben Gurion University in Beer Sheva in industrial engineering and management, he previously served as the CEO of Israeli companies Keter, a retail chain, Gali, also a retail chain, and Attrakzia. He succeeded at turning around all three companies from losses to profits through corporate restructuring.

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