Intel snaps up self-driving tech firm Mobileye in $15B deal

Intel on Monday announced plans to increase its role in the self-driving auto market, acquiring Israel-based Mobileye for $15.4 billion.

“In October, Qualcomm acquired automotive chip supplier NXP for $47 billion, further fueling Intel’s need to quickly get on board the automotive wave”, Recode noted.

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.

“We want to bring all these technologies together in one package”, said Krzanich. A subsidiary of Intel will acquire all the shares of Mobileye for $63.54 (£51.99) per share in cash. They’ve stayed high: As of 12:30 p.m. EDT, shares of the Israeli maker of advanced driver-assist systems were trading at $61.14, up over 29% from Friday’s closing price.

Mobileye’s stock jumped 3o percent Monday before the opening bell. He also said he and Chief Technology Officer Amnon Shashua will be “running Mobileye just as we have done in the past”. After a deadly crash in Florida, Mobileye “expressed safety concerns regarding the use of Autopilot hands-free” and cut its ties with Tesla. Beneath him, Intel SVP Doug Davis will oversee how Mobileye and Intel work together across the whole company.

The two companies are no strangers to each other’s technology.

How the partnership between Intel and Mobileye takes shape will be evidenced in the near future with the former already joining hands with BMW’s iNext self-driving project, which is expected to launch in 2021.

Brian Krzanich, Intel CEO, said: “This acquisition is a great step forward for our shareholders, the automotive industry and consumers”.

As Reuters notes, the acquisition is the world’s largest purchase of a company dedicated exclusively to autonomous-driving tech.

According to Intel, the autonomous vehicle market will grow to almost $70 billion in the next 13 years. That investment was announced last month. The $39 billion deal is expected to close later this year.

Intel’s interest in Mobileye could help it against competitors like Nvidia and Qualcomm.