Intel Buys Computer Vision Specialist Itseez
Intel Corp. (NASDAQ: INTC – $31.51) announced that it has signed a definitive agreement to acquire Itseez, Inc. an expert in computer vision algorithms and implementations for embedded and specialized hardware. Itseez provides software and integration services in many market-leading products from cars, security systems and facial recognition. The acquisition furthers Intel’s efforts to win in the so-called Internet of Things market segments like automotive and video, where the ability to electronically perceive and understand images provides the company entry into new markets. San Francisco-based Itseez, a closely held company founded in 2005, has developed software and services for driver-assistance systems to help warn of possible collisions, improve driver awareness and simplify driving. Terms of the deal were not disclosed. The announcement comes as Intel transforms itself from a supplier of chips for personal computers, data centers and communication devices to more advanced and diversified integrated circuits and services.
Intel has about $25 billion in cash and cash equivalents on its books and future acquisitions remain in the cards. As such, Intel shares offer good risk-adjusted total return potential for the pull to 2019-2021. INTC pays a well-covered, and steadily increasing dividend – currently yielding 3.3% – that adds a degree of support to its shares.