Intel buys Mobileye for $22 billion

Intel have announced plans to purchase Israeli technology company Mobileye at the cost of $22.09 billion. Mobileye is a market leader in the field of autonomous vehicle technology, developing vision-based advanced driver assistance systems such as collision detection by reading inputs from cameras, radar and laser sensors. The Jerusalem-based company has contracts with 27 different car makers and controls about 70 per cent of the market for software that runs autonomous emergency braking and semi-autonomous cruise control systems in passenger vehicles, according to the Associated Press.  “This acquisition essentially merges the intelligent eyes of the autonomous car with the intelligent brain that actually drives the car," Intel CEO Brian Krzanich said in a statement. Krzanich added Intel can provide higher levels of internet connectivity and access to bigger data centres. "If you put all of that together, you really get an end-do-end solution for autonomous driving," said Mobileye Chairman and co-founder Amnon Shashua, who will continue leading the combined autonomous car unit. Intel will purchase each share of Mobileye for (US)$63.54, 34 per cent higher than its Friday closing price. Both companies still need to approve of the transaction at board level. Mobileye’s stock jumped 30 per cent at the news to (US)$61.25. Intel shares, however, fell 2.4 per cent to (US)$35.06.