Word has been circulating that global chip manufacturer, Intel is planning to acquire the traffic startup Moovit to boost the former's autonomous car division.
According to a report on Techcrunch, multiple reports from different media sources have gotten in touch with the publication stating that the microchip company is already in its final stages of a deal to acquire Moovit. The startup tracks down traffic and provides transit solutions to more than 800 million people by using big data analytics. The price of the deal is believed to be in the region of $1 billion and is expected to close in the next few days.
Neither Nir Erez--founder and CEO of Moovit--or Intel's spokespeople have released any statement about the matter. However, the spokesperson of Moovit did not deny the reports that have been spreading in the media.
"At this time we have no comment, but if anything changes I'll definitely let you know," said Moovit's spokesperson.
Intel is acquiring Moovit for $1 billion to boost its autonomous car division
The sources that coordinate with Techcrunch have stated that Moovit will become part of Intel's Israeli automotive hub which is anchored by Mobileye. The report said that Intel Capital previously backed up Moovit in a strategic investment, while Mobileye was acquired by Intel for $15.3 billion in 2017.
The report also explained that some of the most challenging aspects of getting autonomous vehicle services up and running are ingesting and actioning reliable, intelligent routing and real-time traffic data--which is what Moovit already does best.
However, the report also did not clarify what the role of Moovit will be in this partnership with Intel. It was confirmed that Intel and Mobileye were already working with Moovit.
The growing global need for better transportation
The latter led a Series D last round of funding for $50 million in 2018. As a part of the previous deal, Professor Amnon Shashua, senior vice president of Intel and CEO/CTO of Mobileye, became one of the board of directors of Moovit.
Moovit produced a popular application in 2018 and said that 120 million people globally are using its iOS, Web, and Android apps.
The latest data shows that the figure spiked to over 800 million riders who are using the app this year. Intel and Moovit's rumored partnership is an essential deal that will help the transportation industry during the coronavirus pandemic.
The startup company is currently focused on helping healthcare frontliners who need help to get from one place to another and to keep things operational.
