Intel to buy Mobileye in deal valued at about US$15b

[TEL AVIV] Intel Corp plans to buy Israel's Mobileye NV in a deal representing an equity value of about US$15.3 billion, cementing a partnership in a push into the fast-growing market for autonomous cars.

The US chipmaker will pay US$63.54 per share in cash for Jerusalem-based Mobileye, according to a statement Monday from both companies. The deal is the biggest-ever acquisition of an Israeli technology company and Mobileye's shares surged 32 per cent in premarket trading in New York. The stock has climbed 24 per cent since the start of the year, taking its market value to more than US$10 billion.

Mobileye, which sells software that alerts drivers to pedestrians and unintended lane departures, has in recent months been signing up carmakers for its more advanced products.

Intel and Mobileye have already teamed up in a partnership with BMW AG as the luxury-car maker plans to introduce the fully autonomous iNext car by 2021. The companies are dispatching a fleet of 40 self-driving 7-Series sedans this year to hone systems for complex urban traffic.

"Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers," Intel Chief Executive Officer Brian Krzanich said in the statement.

BLOOMBERG