Intel Corp. is acquiring Israeli self-driving car technology firm Mobileye for US$15.3 billion, a deal which highlights the chipmaker’s ambitions in the field of autonomous vehicles.
The company will pay US$63.54 per share in cash, representing a premium of about 33 percent to Mobileye’s Friday closing price, Reuters reports.
Mobileye supplies integrated cameras, chips and software for driver-assist systems — the building blocks for self-driving cars — to more than two dozen vehicle manufacturers.
Intel CEO Brian Krzanich said the acquisition was akin to merging the “eyes of the autonomous car with the intelligent brain that actually drives the car.”
Mobileye could propel Intel into the front ranks of automotive suppliers at a time when the chip giant has been reaching for market beyond its core computer semiconductor business, Reuters noted.
It also promises to escalate the race among the world’s carmakers and suppliers to acquire autonomous vehicle technology.
Goldman Sachs has projected that the market for advanced driver assistance systems and autonomous vehicles will grow to US$96 billion in 2025 from about US$3 billion in 2015.
Mobileye brings a broad portfolio that includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.
The company, founded in 1999, is said to account for 70 percent of the global market for driver-assistance and anti-collision systems.
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