Intel (INTC) announced Monday that it will buy Mobileye (MBLY) for $63.54 a share, with an equity value of $15.3 billion and an enterprise value of $14.7 billion.
"This acquisition is a great step forward for our shareholders, the automotive industry and consumers," said Intel CEO Brian Krzanich in a release announcing the deal. "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 the deal to boost adjusted EPS and free cash flow immediately upon closing, which the companies see within nine months.
Israel-based Mobileye rose 28.2% to 60.62 at the closing bell on the stock market today. The offer price is just below Mobileye's all-time high of 64.48 set in August 2015.
Intel stock fell 2.1% to 35.16.
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Mobileye had soared earlier in premarket activity following a report by TheMarker, a leading Israeli financial newspaper, that a takeover deal was imminent.
Intel and Mobileye have been working together on autonomous vehicles. The companies have a partnership with BMW (BMWYY) on developing a self-driving car.
Intel also recently acquired a stake in mapping service HERE, co-owned by BMW and other German automakers including Volkswagen (VLKAY) luxury unit Audi. Mobileye has a data-sharing alliance with HERE and is also working with Volkswagen.
Mobileye was a longtime partner with Tesla (TSLA), but the two companies had a public falling out last year following some fatal crashes involving Tesla's Autopilot systems.
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