US chip-making giant Intel has made a big money move into the autonomous car market, having agreed to acquire Israeli autonomous tech provider Mobileye for $15.3bn (£12.6bn).

The two companies have revealed a definitive agreement for Intel to acquire the company. Under the terms of the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3bn and an enterprise value of $14.7bn.

Intel will integrate its automated driving group with Mobileye's operations, with the combined entity being run by Mobileye co-founder and chairman Amnon Shashua from Israel.

In a release, Intel estimated that the vehicle systems, data and services market will be worth $70bn by 2030. It added that it expects autonomous cars to generate 4,000GB of data per day by 2020.

Explaining the logic behind the move, Brian Krzanich, Intel chief executive officer, said: “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.”

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In a letter to Mobileye’s employee’s, Shashua and co-founder Ziv Aviram said they were to continue running Mobileye as they had in the past, adding: “We will continue to do what we believe is best for our business, our goals and our long-term vision.

“Mobileye’s relationships with OEM customers, Tier 1 partners and STMicro, our EyeQ roadmap, and our after-market division operations continue uninterrupted. Mobileye’s name and brand will remain intact (but with some graphics changes to our logo, after the closing of the acquisition, to reflect the fact that substantial Intel resources would be integrated with and into Mobileye).”