Intel buys Mobileye for $15.3bn to drive further into self-driving cars

Intel buys company behind Tesla's Model S autonomous vehicle technology

Intel has scooped up autonomous vehicle technology developer Mobileye in a deal valued at $15.3bn.

Mobileye, based in Israel, develops vision-based technology predominantly used in self-driving vehicles and Intel is, obviously, anticipating that the company's technology will play a big part in the anticipated autonomous vehicle revolution.

Jerusalem-based Mobileye's driver assistance technology provides warnings before collisions. Tesla began incorporating the companies' technology into its Model S cars in 2015.

Intel partnered with Mobileye last year, along with BMW, with the goal of making an autonomous car powered by its processors and the Israeli firm's software by 2021. In January, Mobileye announced it was developing a test fleet of autonomous cars together with the two companies.

On Monday, Intel announced that it has purchased the company for $15.3bn, marking the biggest-ever acquisition of an Israeli technology company. It's also the biggest purchase of a company solely focused on the autonomous driving sector.

"The acquisition will couple the best-in-class technologies from both companies, including Intel's high-performance computing and connectivity expertise and Mobileye's leading computer vision expertise to create automated driving solutions from the cloud through the network to the car," Intel said in a post announcing the acquisition.

"The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles," Intel said in a post announcing the acquisition.

Shares of Mobileye rocketed more than 30 per cent in premarket trading following the announcement.

This isn't Intel's first major play into the self-driving vehicle market. Last April, the firm scooped up Yogitech, an Internet of Things (IoT) startup that focuses on boosting the security credentials of chips used in robots, self-driving cars and other autonomous devices.

The following month, Intel lobbed cash at computer vision firm Itseez which looks for firms to use its technology to make IoT systems and autonomous vehicles commonplace.