Intel said: "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 auto".
Intel's chips are in several hundred autonomous test vehicles, the company said in January. Professor Amnon Shashua, who is one of Mobileye's co-founders and now serves as Chairman and CTO of the company, will lead this new division within Intel.
Intel expects the vehicle systems, data and services market to be worth more than £55bn by 2030.
Mobileye's EyeQ 5 technology provides 360-degree vision sensors to enable a vehicle to interpret its surroundings.
Intel Corp. will pay $63.54 for each Mobileye N.V. share, which is a 34 percent premium to the vehicle technology company's March 10 closing price. Intel has been working with them for a while now on developing gen-next computer vision based technologies for autonomous driving.
He called it "a great step forward for our shareholders, the automotive industry and consumers", adding: "Together, we can accelerate the future of autonomous driving". Intel will now hope to combine that with its own chip-making chops to capture a sizable chunk of the autonomous auto market just as it takes off.
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Intel aims to leverage Mobileye in order to grow to become an integral player in the hardware and software powering the transition to driverless cars, as part of its wider Internet of Things strategy.
A number of other equities analysts have also recently commented on MBLY.
Mobileye, founded in 1999 and based in Jerusalem, specializes in creating chips and software for autonomous vehicles, including data analysis and mapping.
Mobileye's current network of relationships with manufacturers should go on interrupted for now and very little is likely to change for the time being at the company's Israeli offices: the current chairman, Amnon Shashua, will continue to head the company and no big changes regarding staff have been announced. Intel must have liked its work because it has made a decision to acquire MobilEye for $15.3 billion.
Intel and Mobileye aren't strangers by any means. The two companies announced plans to put 40 autonomous BMW cars on American and European roads by the end of this year.