Intel Buying Israeli Self-Driving Car Technology company Mobileye for $15 Billion

Chip making giant Intel is purchasing Israeli-based sensor company Mobileye in a $15.3 billion deal.

The two companies made the announcement early Monday, after Israeli business news publication, The Marker first broke the news. Intel is offering $63.54 per share in cash, valuing Mobileye at about $15.3 billion on a fully-diluted basis, and $14.7 billion in enterprise value.

The news sent shares of Mobileye, which makes self-driving systems for carmakers, up 33% in premarket trading Monday. That added $3.5 billion to Mobileye’s now near $14 billion market cap.

“The transaction extends Intel’s strategy to invest in data-intensive market opportunities that build on the company’s strengths in computing and connectivity from the cloud, through the network, to the device,” the Monday press release read.

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.