After Intel announced it would buy the Israeli company, Mobileye, for $15.3 billion a few months ago, and formally acquired all 84% of its outstanding shares yesterday (Tuesday), the State of Israel anxiously awaits its big cut in the form of taxes on the Israeli shareholders who profited from the deal.

Israel set to receive $1 billion in taxes from deal

Israel set to receive $1 billion in taxes from deal Photo Credit: Channel 2 News

Yesterday (Tuesday), Intel officially announced its complete acquisition of Mobileye, with the purchase of 84% of Mobileye’s outstanding shares. In Israel, cuts from the huge deal are anxiously being awaited as this coming September, the State of Israel is due to receive 4 billion NIS or approximately $1 billion in taxes.

The large sum comes from high taxes levied on the company’s four Israeli primary shareholders among which includes its co-founders Amnon Shashua and Ziv Aviram, as well as Mobileye’s largest private investor, Shmuel Harlap.

Mobileye becomes Intel subsidiary

Mobileye becomes Intel subsidiary Photo Credit: Public Relations/Channel News

“With Mobileye, Intel emerges as a leader in creating the technology foundation that the automotive industry needs for an autonomous future,” stated Intel CEO Brian Krzanich. “It’s an exciting engineering challenge and a huge growth opportunity for Intel. Even more exciting is the potential for autonomous cars to transform industries, improve society and save millions of lives.”

Intel purchased the Israeli company for $15 billion

Intel purchased the Israeli company for $15 billion Photo Credit: Reuters/Channel 2 News

Intel’s autonomous driving department will merge with the Israeli company. As an Intel subsidiary, Mobileye will continue to operate from Israel under the supervision of co-founder Professor Amnon Shashua, who will become the Intel senior vice president and Mobileye CEO and chief technology officer. Ziv Aviram, the other co-founder, will resign from the company.

“Leading in autonomous driving technology requires a combination of innovative proprietary software products and versatile open-system hardware platforms that enable customers and partners to customize solutions,” said Shashua. “For the first time, the auto industry has a single partner with deep expertise and a cultural legacy in both areas. Mobileye is very excited to begin this new chapter.”