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Intel buys Israeli self-driving car firm for $15 billion

Intel buys Israeli self-driving car firm for $15 billion
Posted at 7:58 AM, Mar 13, 2017
and last updated 2017-03-13 07:58:21-04

LONDON (CNNMoney) -- Intel is snapping up self-driving car firm Mobileye in a deal worth $15.3 billion.

The chipmaker confirmed the acquisition Monday, saying it will pay $63.54 per share in cash for the Israeli tech firm. Mobileye shares trading in New York were poised to surge more than 30% on the news.

Jerusalem-based Mobileye has been working with Intel and BMW to develop a fully autonomous, self-driving vehicle.

The company is a leader in collision prevention sensors that alert drivers if a pedestrian is in the road, or if they're approaching another car too quickly.

The technology uses artificial vision sensors placed in the cars, which Mobileye says act like a "driver's third eye."

Mobileye was founded in 1999. Its technology helps cars navigate on and off ramps independently and even pass other vehicles without input from a human driver.

The company says that more than 10 million vehicles worldwide are equipped with its technology. It has offices in the U.S., China, Germany and Japan.