Intel Confirms Acquisition of Israeli Transport App Moovit to Amp Up Mobileye's Tech

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A local public transport information app operated by Moovit.
A local public transport information app operated by Moovit.Credit: Pau Barrena, Bloomberg

U.S. company Intel on Monday confirmed a TheMarker report that they have acquired Israeli transport company Moovit, which has developed a popular transport app, to improve the services of its subsidiary Mobileye.

The deal was signed and closed at a cost of almost $900 million to Intel. Because Intel already owns a 7% share of share of Moovit, through its corporate investment arm, the cost of the buyout to the company is $840 million. 

Sources involved in the deal told TheMarker that an additional $100 million, paid by Intel, will go to Moovit’s approximately 210 employees as an incentive for them to stay on for at least two years after the acquisition is completed.

Moovit’s application provides real-time information on public transportation to offer travelers the best route for their journey. It does so by combining information from 7,500 public transportation operators and agencies with live data from its user community. 

Moovit founders: CEO Erez Nir and Vice President for Operations Roy BickCredit: Moovit

Moovit has 800 million registered users, with some 40 million active users in more than 3,000 cities in 94 countries.

The company generates revenues from a basket of products that includes giving local authorities and public transit operators tools to improve planning and operations and optimize services. It is estimated to have annual recurring revenues of $30 million.

Intel says Moovit will retain its brand and existing partnerships.

With the acquisition, Mobileye will be able to use Moovit's large transportation dataset to optimize predictive technologies based on customer demand and traffic patterns. "Moovit brings Intel’s Mobileye closer to achieving its plan to become a complete mobility provider, including robotaxi services, which is forecast to be an estimated $160 billion opportunity by 2030," Intel said in a press release.

Founder and CEO of Mobileye, Professor Amnon Shashua, who represented Intel on the Moovit board as an observer, told Israeli media that Intel's initial investment in Moovit a year and a half ago was meant to give it an opportunity to learn more about the app, ahead of a future acquisition that was eventually completed.

Moovit was established in 2011 by CEO Erez Nir, Vice President for Operations Roy Bick, and a Yaron Evron, who left the company several years ago. It has since raised about $ 140 million. Its latest round of funding, reported in February 2018, has given the company a $ 550 million cap.

Moovit's biggest shareholder is the U.S. venture capital fund Sequoia Capital, which controls 24%. Other investors include the Israeli VCs BRM Capital and Gemini Israel Ventures, which each hold 16%, Yitzhak Mirilashvili’s Vaizra Investments, with 7%, and Waze founder Uri Levine, with 2%.

Moovit’s co-founders – Nir and Bick – hold 9% and 6%, respectively. Evron still has a 2% stake in the company. 

Those stakes are before dilution and do not take into account employee share options, which probably amount to 10% to 15%.

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