Intel to buy driverless technology firm Mobileye for $15.3 billion

The two companies are already collaborating with BMW on self-driving car technology

US chip giant Intel has agreed to buy Israeli technology firm Mobileye for $14-$15 billion, according to TheMarker, an Israeli financial newspaper.

The companies will announce the acquisition, the largest ever for an Israeli high-tech company, later on Monday, TheMarker reported on its website. Mobileye is a leading supplier of collision-avoidance car sensor systems.



Neither Intel nor Mobileye were immediately reachable for comment.

The two companies are already collaborating with BMW on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.

BMW announced its partnership with the two firms in July, with the goal of developing the capability of introducing fully autonomous vehicles to the market by 2021.

Founded in 1999 with a mission to reduce vehicle injuries and fatalities, Mobileye listed in 2014 on the New York Stock Exchange, where its market cap is $10.6 billion.



Goldman Sachs invested $130 million in the company in 2007.

Last October, Qualcomm announced a $47 billion deal to acquire NXP, the largest automotive chip supplier, putting pressure on other chipmakers seeking to make inroads into the market for autonomous driving components, including Intel, Mobileye and rival NVIDIA.

The Qualcomm-NXP deal, which will create the industry's largest portfolio of sensors, networking and other elements vital to autonomous driving, is expected to close later in 2017, subject to regulatory and shareholder approvals.

Mobileye, which employs around 600 people, had adjusted net income of $173.3 million in 2016.