Intel has agreed to acquire Mobileye, a maker of self-driving car technology, for more than $15 billion—a 33% premium on the company’s last closing share price.
The major move shows that the US chipmaker is eager to achieve a dominant role in the rapidly evolving autonomous technology market.
Mobileye develops collision detection software, as well as cameras and sensors, giving Intel a strong portfolio of autonomous technologies. The company, founded in 1999, owns a 70% global marketshare for anti-collision systems.
The two tech giants were already working together, long before Intel’s offer, on a project with European automaker BMW, as well as on Intel chips designed for fully autonomous vehicles (which are not due to launch until 2021).
Intel says the acquisition will not disrupt Mobileye’s current product roadmap.