UPDATE: Intel Buys Mobileye for $15.3 Billion

Chipmaker Intel Corp. has agreed to buy Israel’s Mobileye NV for $15.3 billion in an all-cash deal that values the Jerusalem-based maker of camera-based sensors at $14.7 billion. Intel will pay $63.54 per share, a 54% premium on Mobileye’s closing price on Friday.

The acquisition, which values Mobileye at $14.7 billion, is the biggest to date in the fast-growing world of autonomous vehicle technology. The deal is the largest ever for an Israeli tech company and Intel’s second-largest purchase after its 2016 acquisition of programmable logic device developer Altera Corp. for $16.7 billion

The companies expect to complete the sale within nine months, pending regulatory approvals. Last July Intel and Mobileye partnered with BMW AG to develop technologies and open standards for self-driving vehicles. Under the alliance, Intel and Mobileye agreed to co-develop algorithms to run Mobileye’s data modeling with Intel’s computing platforms.

Mobileye's sensors are used in advanced driver assistance systems. Intel says it will merge the company with its own Automated Driving Group under the leadership of Amnon Shashua , Mobileye co-founder and chairman. Intel Senior Vice President Doug Davis will report to Shashua with responsibility for integrating Mobileye with Intel’s business groups.

Last July the two companies partnered with BMW AG to develop technologies and open standards for self-driving vehicles.

Intel estimates the self-driving car market will be worth as much as $70 billion per year by 2030. But the company, better known for chips used in personal computers, has lagged rival Qualcomm Technologies Inc. in that field. In October Qualcomm became the world’s largest supplier of semiconductors to the auto industry through its $47 billion acquisition of NXP Semiconductors NV. NXP dominates the market for chips used to power in-car infotainment systems.