Intel is buying the autonomous-driving company Mobileye for $15.3 billion
Intel is buying the Israeli autonomous-driving company Mobileye for $63.54 a share in cash, or about $15.3 billion.
Mobileye soared about 30% in premarket trading Monday after the Israeli newspaper Haaretz broke the news.
The Jerusalem-based company develops vision-based driver-assistance tools to provide warnings before collisions.
"Mobileye brings the industry's best automotive-grade computer vision and strong momentum with automakers and suppliers," Intel CEO Brian Krzanich said in a statement.
"Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers."
Tesla began incorporating Mobileye's technology into Model S cars in 2015.
In January, it announced it was developing a test fleet of autonomous cars together with BMW and Intel.
Mobileye was cofounded in 1999 by Amnon Shashua, an academic, and Ziv Aviram, who is the CEO. Goldman Sachs and Morgan Stanley took it public in 2014.
Here's the full press release:
SANTA CLARA, Calif. & JERUSALEM--(BUSINESS WIRE)--Intel Corporation (INTC) and Mobileye N.V. (MBLY) today announced a definitive agreement under which Intel would acquire Mobileye, a global leader in the development of computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems and autonomous driving. Pursuant to the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing an equity value of approximately $15.3 billion and an enterprise value of $14.7 billion.