Intel, a global technology company, has entered into a definitive agreement to acquire Mobileye, a global company that develops computer vision and machine learning and mapping for advanced driver assistance systems and autonomous driving.

In accordance with the agreement, a subsidiary of Intel will initiate a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing an equity value of approximately $15.3bn and an enterprise value of $14.7bn.

Both the companies anticipate that this new deal would accelerate innovation for the automotive industry and place Intel as a leading technology provider for highly and fully autonomous vehicles.

Intel CEO Brian Krzanich said: “This acquisition is a great step forward for our shareholders, the automotive industry and consumers.

“Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions.

“Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers.

"Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”

Intel expects that the vehicle systems, data and services would be a $70bn market by 2030.

"Intel expects that the vehicle systems, data and services would be a $70bn market by 2030."

The transaction would allow Intel to build on its strengths in computing and connectivity from the cloud, through the network, to the device.

The acquisition will combine technologies from both the companies including connectivity, computer vision, data centre, sensor fusion, and high-performance computing.

Intel and Mobileye expect to deliver driving solutions that will transform the automotive industry.

Image: Example of Mobileye mapping. Photo: courtesy of  Intel acquisition of Mobileye.