Updated Monday with announcement:

Intel Corp. today announced it’s buying Israeli startup Moovit Inc., which has built a popular public transit app of the same name, for about $900 million, or $840 million net of an Intel Capital equity gain.

“Intel’s purpose is to create world-changing technology that enriches the lives of every person on Earth, and our Mobileye team delivers on that purpose every day,” Intel Chief Executive Bob Swan said in a statement. “Mobileye’s ADAS technology is already improving the safety of millions of cars on the road, and Moovit accelerates their ability to truly revolutionize transportation – reducing congestion and saving lives – as a full-stack mobility provider.”

Moovit, whose free mobile navigation app provides transit information in more than 100 countries, had raised $133 million in venture capital from investors such as Intel Capital, B W iVentures and Sequoia Capital. People use Moovit’s app to figure out the best way to get around cities using public transport. The app can also integrate with other apps such as Uber to provide multiple routes using different forms of public transport such as ride-hailing services.

Last month, Moovit launched what it calls an “emergency mobilization service” for transit agencies and enterprises to help people get around during the COVID-19 pandemic. The new service transforms vehicle fleets into an on-demand service that essential employees can use to get to work safely.

Another report from TechCrunch Sunday said Intel plans to integrate Moovit with its automotive business Mobileye, which was acquired by the chipmaker for $15.3 billion back in 2017. Mobileye is leading Intel’s autonomous vehicle efforts and would clearly benefit from Moovit’s real-time traffic data and intelligent routing capabilities.

The startup uses a mix of AI and data analytics to monitor real-time traffic and offer transit directions to roughly 800 million users. Those capabilities would be useful for robotaxis and other driverless vehicles looking for the fastest route to their destination.

Intel said Moovit will join its Mobileye business but keep its brand and existing partnerships.

“Moovit’s massive global user base, proprietary transportation data, global editors community, strong partnerships with key transit and mobility ecosystem partners, and highly skilled team is what makes them a great investment,” Mobileye CEO Amnon Shashua said in a statement. “Moovit is a strong brand trusted by hundreds of millions of people globally. Together, with Mobileye’s extensive capabilities in mapping and self-driving technology, we will be able to accelerate our timeline to transform the future of mobility.”

Intel could in fact have multiple ambitions with Moovit, analyst Holger Mueller of Constellation Research Inc. told SiliconANGLE. For one thing, Moovit could help the company to get better mobility information on its mobile chips, as a kind of data-on-silicon play, the analyst said. It could also be a simple financial investment.

“It may also be a data-as-a-service play, as Moovit know how public transport works and collects 5 million-plus data points anonymously every day,” Mueller said. “That could help Intel’s autonomous driving ambitions, generating better traffic forecasts with Moovit’s data. There are plenty of synergy options for Intel, which is a company that has the resources to try to buy growth.”

Intel already had a relationship with Moovit. The chipmaker led Moovit’s last major funding round in 2018. As part of that transaction, Professor Amnon Shashua, an Intel senior vice president and chief executive officer of Mobileye, joined Moovit’s board as an observer.

The deal could also be an “acquihire,” with Moovit’s employees set to receive about 10% of the $1 billion as part of a retention package, according to another report by Hebrew-language newspaper The Marker.

Image: Intel