Granulate, an Israeli computing technology startup, will be purchased by Intel for a reported $650 million | Technology
|Granulate, an Israeli computing technology startup, will be purchased by Intel for a reported $650 million|
Granulate, a startup in Israeli computing technology, will be acquired by Intel for a reported $650 million!
The US chip giant says the purchase will help cloud and data center customers maximize performance, reduce costs; The deal is Intel's 7th acquisition of an Israeli company since 2016.
US semiconductor giant Intel announced that it is buying Israeli computing tech startup Granulate for $650 million, marking the chip multinational's seventh acquisition of an Israeli company in just five years. Intel bought Jerusalem-based autonomous driving systems maker Mobileye in 2017 for $15.3 billion, the largest tech exit for an Israeli company to date.
Intel said in an announcement Thursday that the acquisition of Granulate will help "cloud and data center customers to maximize computer workload performance and minimize infrastructure and cloud costs."
The terms of the deal were not disclosed, but the Haaretz daily was the first to report that the deal was valued at around $650 million.
Granulate was founded in Tel Aviv in 2018 by Asaf Ezra, CEO, and Tal Asyag, who serves as CTO. The company developed an artificial intelligence-powered optimization layer that, it says, helps improve computing performance and enables better handling of workloads, reducing response times by up to 40% and computing expenses. Reduces up to 60%.
The startup partnered with Intel in 2021 to develop Intel Workload Optimizer, an automated solution that enhances workload performance and reduces latency in cloud deployments. The tools are being leveraged by Mobileye to optimize technologies including its cloud-based autonomous driving system and its mapping systems, AI applications and cameras.
Granulate also participated in the first group of Intel Ignite startup program for deep tech early-stage companies in 2019. Granulate has raised approximately $45 million with investors including Red Dot Capital Partners, Insight Partners, TLV Partners and Hetz Ventures.
The purchase deal is expected to close at the end of 2022 this year. According to Thursday's announcement, 120 of Granulate's employees will be integrated into Intel's datacenter and AI business units.
Sandra Rivera, executive vice president and general manager of the Datacenter and AI Group at Intel, said in a statement to the company that Granulate's technology reinforces Intel's ambitions to meet growing demand in a new computing era.
"Today's cloud and data center customers demand scalable, high-performance software to make the most of their hardware deployments," Rivera said. "Granulet's state-of-the-art autonomous optimization software can be applied to production workloads without requiring the customer to modify their code, driving optimized hardware and software value for every cloud and data center customer."
Greg Lavender, chief technology officer, senior vice president and general manager of the Software and Advanced Technology Group at Intel, said Granulate's "innovative approach to real-time optimization software delivers performance benefits, cutting cloud costs, and helping customers realize Complementing Intel's existing capabilities for continuous workload learning."
Ezra said that as part of Intel, "Granulet will be able to provide autonomous adaptability to even more customers globally and rapidly expand its offering with the help of Intel's 19,000 software engineers."
Haaretz said about $100 million of Intel's purchase price for Granulate is for talent retention as well as some severance packages.
This is Intel's second intended acquisition of an Israeli company so far in 2022.
In February, Intel signed a deal to buy Migdal Haymake-based firm Tower Semiconductor for $5.4 billion to significantly increase manufacturing output for semiconductors.
Tower Semiconductor manufactures analog semiconductor chips for the consumer, industrial, automotive, mobile, infrastructure, medical, aerospace and defense sectors. The firm has worked in the past for the US government to develop imaging technology that was used by NASA to capture its first image in the Sun's atmosphere in 2018.
Intel said the purchase transaction is expected to close in about 12 months.
Late last year, Intel said it was acquiring Screenovate, an Israeli developer of beaming and mirroring solutions for mobile devices, for an undisclosed amount.
Intel bought Ripley Technologies, a developer of 3D reconstruction technologies for large-scale sporting events, in 2106, but closed it in 2021.
In 2017, the chip multinational bought Mobileye, in line with its 2019 acquisition of artificial chipmaker Habana Labs for about $2 billion, and transit tech company Moovit in 2020 for about $1 billion.
Mobileye has become a central part of Intel's global operations, as it looks to a future with fully autonomous vehicles.
Source: The Times of Israel, Direct News 99