Intel’s Acquisition of Mobileye

In March 2017, Intel announced that it planned to acquire Israel-based Mobileye, a global leader in the development of computer vision and machine learning for advanced driver assistance systems and autonomous driving. The combination of Intel and Mobileye will allow Mobileye’s leading computer vision expertise (the “eyes”) to complement Intel’s high-performance computing (the “brains”) to create automated driving solutions. The acquisition is expected to accelerate innovation for the automotive industry and positions Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030. The Federal Trade Commission (FTC) cleared the proposed transaction in June 2017.

Compass Lexecon’s analyses focused on addressing the potential theories of harm based on the vertical relationship between the parties and concluded that the proposed merger would not enhance the market power of the integrated company. In addition, Dr. Israel and the Compass Lexecon economists supported the client with analyses of the nascent aspect of the industry, competition for each of the parties’ core products and efficiencies in the context of a merger of complementary products.

The Compass Lexecon team was led by expert Dr. Mark Israel, who was supported by a team led by Guillermo Israilevich and including Bryan Keating and Rodrigo Montes. The Compass Lexecon team worked closely with Steve Sunshine, Maria Raptis, Joseph Rancour, Griff Almy and Anisa Somani, of Skadden, Arps, Slate, Meagher & Flom LLP.